Pareto Chart

[Lin Weidong]

Pareto Chart

A Pareto chart can be used to quickly identify what business issues need attention. The Pareto chart gets its name from Vilfredo Pareto, an Italian Economist. In 1906, Pareto noted that 20% of the population in Italy owned 80% of the property. He proposed that this ratio could be found many places in the physical world and theorized it might be a natural law, where 80% of the outcomes are determined by 20% of the inputs.