2.14:
Pareto Chart
Consider the data on the number of COVID-19 cases in different countries.
Suppose one wants to know the country with the highest or lowest number of COVID patients. In that case, they can use the Pareto chart to visualize the given data.
A Pareto chart is a modified bar graph. In this chart, the bars are arranged in descending order from left to right.
Here, the categories, that is, the different countries, are featured on the horizontal axis. The frequencies are represented on the vertical axis. A bar above each category indicates the frequencies of COVID patients for each country.
From the chart, it can be seen that country E has the highest number of COVID patients, and country F has the lowest number of patients.
Pareto charts are thus a useful tool to visualize large data sets.
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.