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WWGD

Science Advisor

Gold Member

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Hi,

The 20:80 , aka Pareto rule applies in certain processes. Pareto states that in some cases,

20 percent of the input generates 80% of the output (obviously not intended to be exactly

20 and 80). Example: 20% of customers generate 80% of the revenues , or 20% of a list of

problems in an operating system generate 80% of customer complaints, or 20% of the population

owns 80% of assets.

Anyway, my question is on how do determine if/when the Pareto distribution applies to a given

situation , or if there are some general results on how to apply it.

EDIT: I am trying to understand the type of data one would have to look at and, given the data, how one

can "tease out" from the data whether there is a 20-80 relation.

Thanks.

The 20:80 , aka Pareto rule applies in certain processes. Pareto states that in some cases,

20 percent of the input generates 80% of the output (obviously not intended to be exactly

20 and 80). Example: 20% of customers generate 80% of the revenues , or 20% of a list of

problems in an operating system generate 80% of customer complaints, or 20% of the population

owns 80% of assets.

Anyway, my question is on how do determine if/when the Pareto distribution applies to a given

situation , or if there are some general results on how to apply it.

EDIT: I am trying to understand the type of data one would have to look at and, given the data, how one

can "tease out" from the data whether there is a 20-80 relation.

Thanks.

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