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2.14: Pareto Chart

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Pareto Chart

2.14: Pareto Chart

A Pareto chart is a bar graph or a combination of both line and bar graphs. The bar lengths represent the individual values or the frequency, while the lines represent the cumulative total values. In this chart, the longest bars are arranged on the left and the shortest bars on the right, which makes it easier to read and interpret the data. It can also be called a Pareto diagram or Pareto analysis.

The Pareto chart is named after the Italian economist Vilfredo Pareto, who described the Pareto principle. According to this principle, roughly 80% of the outcomes can be traced from 20% of the conditions for many events. For example, in calculating the population of any country, in predicting the defects in quality control divisions, in analyzing the business profit,  this assumption is used. Simply put, the Pareto chart helps provide statistical information on bulk details for each category. Thus, it is a valuable tool in statistics. 


Pareto Chart Bar Graph Line Graph Individual Values Frequency Cumulative Total Values Longest Bars Shortest Bars Data Interpretation Pareto Principle Vilfredo Pareto Outcomes Conditions Population Calculation Defects Prediction Profit Analysis Statistical Information Valuable Tool

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