A Pareto chart is based on which key principle?

The correct answer is A. 80/20 rule. A Pareto chart is built on the 80/20 rule (Pareto Principle), which states that roughly 80% of effects come from 20% of causes - so the chart visually ranks defects or issues by frequency to identify the "vital few" causes worth addressing first. The other options are…

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Options

A80/20 rule
BCentral limit theorem
CStandard deviation
DNormal distribution

How the community answered

(27 responses)

A
70% (19)
B
7% (2)
C
4% (1)
D
19% (5)

Explanation

A Pareto chart is built on the 80/20 rule (Pareto Principle), which states that roughly 80% of effects come from 20% of causes - so the chart visually ranks defects or issues by frequency to identify the "vital few" causes worth addressing first.

The other options are statistical concepts unrelated to Pareto analysis: the Central limit theorem (B) describes how sample means form a normal distribution with enough samples; standard deviation (C) measures data spread around a mean; and normal distribution (D) is a bell-curve probability distribution - none of these underpin the ranking logic of a Pareto chart.

Memory tip: Think "Pareto = Priority" - both start with P, and the 80/20 rule tells you which 20% to prioritize to solve 80% of your problems.

Topics

#Pareto chart#80/20 rule#data analysis#prioritization

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