What is Pareto Chart?

A Pareto Chart is a bar chart that re-orders the categories so they are rank-ordered from the largest total occurrences to the smallest.

The Pareto Principle

The Pareto principle is known as the  80/20 rule. It states that in any given scenario, 80% of the outcomes are the result of 20% of causes.

Limitations of Pareto Chart

The key to using the Pareto principle is to not use it in situations where it doesn’t apply. It is an observation, not a law.

How the Pareto Principle (80 20 Rule) Can Be Used?