Question

"pareto analysis is sometimes referred to as the ____ rule, meaning that 80 percent of problems are often due to 20 percent of the causes."

Answer 1

Pareto analysis is sometime referred to as 80 by 20 rule. Pareto analysis is a method of classifying items, events or activities according to their relative importance. In accordance with this theory, the 80% of the wealth is held by 20% people. Hence resulting uneven distribution of wealth. Thus, the problems occuring out of this uneven distribution of wealth are in a relatively similar ratio of 80 by 20.