Pareto’s 80/20 Principle
Pareto Principle, also know as “Pareto’s Law”, “Pareto Distribution” or the “80/20 Principle”
Pareto principle can be summarized as follows:
80% of the outputs result from 20% of the inputs.. Examples:
80% of wealth is owned by 20% of people
80% of a company’s profits come from 20% of its customers
80% of road traffic accidents are caused by 20% of drivers
80% of software usage is by 20% of users
80% of a company’s complaints come from 20% of its customers
We wear around 20% of our clothes 80% of the time