pareto

Pareto principle

1) The heuristic rule which states that where there is a large number of contributors to a result, the majority of the result is due to a minority of the contributors.

Pareto's law

1) Concept applicable in many circumstances where the largest bulk (eg of orders) is attributable to the smallest source (eg customers). Thus it can often be said that 80 per cent of orders come from just 20 per cent of customers or, conversely, 80 per cent of revenue comes from 20 per cent of orders.

Pareto chart/diagram

1) A chart/diagram which shows figures diagram-matically in order of magnitude (often in columns or blocks).