Pareto Diagram on work
Ashely is working on one of the data representation technique that uses the diagrams. She explains the concept to her manager that the diagram helps to identify the critical issues which need the attention immediately. It is based on the concept of a larger number of problems are caused by a smaller number of causes. One of the below diagram which is related to the 80/20 rule, i.e. 80 percent of the problems come from 20 percent of the causes. The diagram is known as?
A. Scatter diagram.
B. Histogram.
C. Cause and effect diagram.
D. Pareto diagram.
Answer: Option D is correct.
Pareto diagram
Pareto diagram is related to the 80/20 rule, i.e. 80 percent of the problems come from 20 percent of the causes. It helps to identify the critical issues which need the attention immediately. It is based on the concept of a larger number of problems are caused by a smaller number of causes. It shows the frequency of errors and the causes in a histogram. It is based on the concept of 80/20 rule. 80 percent of the problems come from 20 percent of the causes. Similar to histogram, except the variables are arranged in descending order (high to low).