Pareto Distribution Variance Calculator
Enter the scale parameter \( x_m \) and the shape parameter \(\alpha\) to calculate the variance of the Pareto distribution.
* Note: The variance exists only if \(\alpha > 2\). For \(\alpha \le 2\), the variance is undefined (infinite).
Step 1: Enter Parameters
e.g., 1
e.g., 3 (must be greater than 2 for the variance to exist)
How It Works
The variance of the Pareto distribution is given by: $$ \text{Var}(X) = \frac{x_m^2 \, \alpha}{(\alpha – 1)^2 (\alpha – 2)} \quad \text{for } \alpha > 2. $$
If \(\alpha \le 2\), the variance is undefined (infinite).