Content deleted Content added
Some changes and may be helpful for engineering students |
Removed some junk |
||
Line 1:
▲[[Link title]]The so-called '''Pareto principle''' (also known as the '''80-20 rule''', the '''law of the vital few''' and the '''principle of factor sparsity''') states that for many phenomena 80% of consequences stem from 20% of the causes. The idea has rule-of-thumb application in many places, but it is commonly misused.
The principle was suggested by management thinker [[Dr. Joseph Moses Juran|Joseph M. Juran]]. It was named after the Italian economist [[Vilfredo Pareto]], who observed that 80% of property in Italy was owned by 20% of the Italian population. (Since J. M. Juran adopted the idea, it might better be called "Juran's assumption".) The assumption is that most of the results in any situation are determined by a small number of causes. This idea is often applied to data such as sales figures: "20% of clients are responsible for 80% of sales volume." Such a statement is testable, is likely to be approximately correct, and may be helpful in decision making.
| |||