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Pareto Principal

The 80/20 rule that is based on Vilfredo Pareto’s research that states only a vital few, (20%), of causes will have a greater impact than the many, (80%), causes. Usually used with a Pareto Chart.

Examples:

80% of the problems come from 20% of the causes
80% of a company’s profits comes from 20% of their customers

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Last Updated: Saturday, 10-Jun-06 15:50:57 PDT

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