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The Pareto principle (also known as the 80/20 rule, the law of the vital few, or the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes. The 80:20 ratio of cause-to-effect became known as the Pareto Principle. The Pareto principle has become a popular business maxim.
Pareto Chart In Excel
Pareto Principle Examples
Observe a blackberry bush: 80% of the blackberries come from 20% of blackberry branches. Why? Maybe because the other branches serve to grab sunlight and feed energy and nourishment to the berry-producing branches.