Statistical principle about ratio of effects to causes
For the optimal allocation of resources, see Pareto efficiency.
This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages)
This article possibly contains original research. Please improve it by verifying the claims made and adding inline citations. Statements consisting only of original research should be removed.(August 2022) (Learn how and when to remove this message)
This article focuses too much on specific examples. Please help improve this article by adding sources that evaluate within a broader context.(August 2022)
(Learn how and when to remove this message)
The Pareto principle (also known as the 80/20 rule, the law of the vital few and the principle of factor sparsity[1][2]) states that for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few").[1]
In 1941, management consultant Joseph M. Juran developed the concept in the context of quality control and improvement after reading the works of Italian sociologist and economist Vilfredo Pareto, who wrote in 1906 about the 80/20 connection while teaching at the University of Lausanne.[3] In his first work, Cours d'économie politique, Pareto showed that approximately 80% of the land in the Kingdom of Italy was owned by 20% of the population. The Pareto principle is only tangentially related to the Pareto efficiency.
Mathematically, the 80/20 rule is roughly described by a power law distribution (also known as a Pareto distribution) for a particular set of parameters. Many natural phenomena are distributed according to power law statistics.[4] It is an adage of business management that "80% of sales come from 20% of clients."[5]
^ abBunkley, Nick (March 3, 2008). "Joseph Juran, 103, Pioneer in Quality Control, Dies". The New York Times. Archived from the original on September 6, 2017. Retrieved 25 January 2018.
^Box, George E.P.; Meyer, R. Daniel (1986). "An Analysis for Unreplicated Fractional Factorials". Technometrics. 28 (1): 11–18. doi:10.1080/00401706.1986.10488093.
^Pareto, Vilfredo (1896–1897). Cours d'Économie Politique (in two volumes). F. Rouge (Lausanne) & F. Pichon (Paris). Volume 1 Volume 2
The Paretoprinciple (also known as the 80/20 rule, the law of the vital few and the principle of factor sparsity) states that for many outcomes, roughly...
population. The Paretoprinciple or "80-20 rule" stating that 80% of outcomes are due to 20% of causes was named in honour of Pareto, but the concepts...
by the line. The chart is named for the Paretoprinciple, which, in turn, derives its name from Vilfredo Pareto, a noted Italian economist. The left vertical...
Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another...
Pareto distribution, which is a power law probability distribution. The Paretoprinciple was named after him, and it was built on his observations that 80%...
required. Two variants are: the Paretoprinciple, which requires any change such that all gain. the (strong) Pareto criterion, which requires any change...
very basic sense liberal values conflict with the Paretoprinciple. If someone takes the Paretoprinciple seriously, as economists seem to do, then he has...
distributions the majority of occurrences (more than half, and where the Paretoprinciple applies, 80%) are accounted for by the first 20% of items in the distribution...
the parameters specifying a Pareto distribution and embodies the Paretoprinciple. As applied to income, the Paretoprinciple is sometimes stated in popular...
perfection often prevents implementation of good improvements. The Paretoprinciple or 80–20 rule explains this numerically. For example, it commonly takes...
all Pareto efficient solutions Paretoprinciple, or the 80-20 rule Bartolomeo Pareto, medieval priest and cartographer from Genoa Graziella Pareto (1889–1973)...
half and three quarters of all homicide in the city—an example of the Paretoprinciple: a large proportion of the effects comes from a small proportion of...
Assess Regularly: Evaluate your team’s time management practices. The Paretoprinciple is the idea that 80% of consequences come from 20% of causes. Applied...
generalists and multipotentialites. In Specialization, Polymaths And The ParetoPrinciple In A Convergence Economy, Jake Chapman writes: Economists tell us that...
in software design. Systems theory Principle of least action Fermat's principle (of least time) Paretoprinciple The Long Tail Parsimony Preferential...
second set of questions. Cornell Notes KWL table Francis P. Robinson Paretoprinciple PQRST (study skill) Spaced repetition Speed reading Study skills Robinson...
It is named for its connection with the Pareto principle named after the economist Vilfredo Pareto. It is especially used in the surroundings of Six...
wealthiest u = 20% of the population has f = 80% of all income (see Paretoprinciple), the income Gini coefficient is at least 60%. In another example,...
remaining terms are used less often individually. This example of the Paretoprinciple (or 80–20 rule) allows search engines to employ optimization techniques...
Magazine, "ParetoPrinciple and the Infinite Value of CRM" Retrieved 05/06/2010 Wang, Hongjie "For Bank Marketing, Re-Focus the ParetoPrinciple on Customer...
and each method has strengths and weaknesses. The Pareto method, derived from the Paretoprinciple, is to cycle count inventory by percentage of inventory...
paradox of value parallel economic model parental dividend Pareto efficiency Paretoprinciple participation participatory economics partnership A business...