Difference between revisions of "Pareto principle"
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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 [[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 efficiency]] and [[Pareto diagram]]s have derived from the ''Principle''. | + | The concepts of [[Pareto analysis]], [[Pareto efficiency]], and [[Pareto diagram]]s have derived from the ''Principle''. |
Latest revision as of 13:45, 6 June 2020
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.
