Pareto principle
The Pareto principle (alternatively known as Pareto's law, the 80/20 rule, the law of the vital few, or the principle of factor sparsity; hereinafter, the Principle) is the hypothesis that roughly 80% of the effects come from 20% of the causes in many cases.
The concepts of Pareto analysis, Pareto efficiency, and Pareto diagrams have derived from the Principle.
Definition
According to Managing Quality by Foster (6th edition),
- Pareto's law (the 80/20 rule). States that 80% of the problems are a result of 20% of the causes.