Editing Pareto distribution (section)

===Relation to the generalized Pareto distribution===
The Pareto distribution is a special case of the [[generalized Pareto distribution]], which is a family of distributions of similar form, but containing an extra parameter in such a way that the support of the distribution is either bounded below (at a variable point), or bounded both above and below (where both are variable), with the [[Lomax distribution]] as a special case. This family also contains both the unshifted and shifted [[exponential distribution]]s.

The Pareto distribution with scale <math>x_m</math> and shape <math>\alpha</math> is equivalent to the generalized Pareto distribution with location <math>\mu=x_m</math>, scale <math>\sigma=x_m/\alpha</math> and shape <math>\xi=1/\alpha</math>  and, conversely, one can get the Pareto distribution from the GPD by taking <math>x_m = \sigma/\xi</math> and <math>\alpha=1/\xi</math> if <math>\xi > 0</math>.