Pareto

🗒️ Description

Pareto is a principle that states that 80% of outcomes come from 20% of the efforts. It’s commonly used in business to indicate that most results are generated by a small portion of work. In other words, it suggests that the majority of outputs come from a minority of inputs.

Pareto principle - Wikipedia

⚙️Examples:

  • The distribution of wealth, where the top 20% of earners hold 80% of the world’s wealth.
  • 80% of outcomes come from 20% of the inputs.
  • 20% of criminals commit 80% of crimes.

Template: knowledge_note_info