PARETO ANALYSIS
The idea that a few can determine an outcome is known as the Pareto analysis rule. This rule assumes that 80 percent of the effects are attributed to 20 percent of the causes. The Pareto chart illustrates the causes of effects.
The Pareto chart is a bar chart that highlights and differentiates the major cause from the minor causes. With the chart, you can address those causes with the highest frequency of occurrences instead of those with low frequency. In other words, you can dedicate time, resources, and effort to the most important causes, not the least important ones.
The Pareto analysis rule makes sense, as it did in the early part of this century when the great Italian economist Vilfredo Pareto developed the idea while ...
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