Management,  P

Pareto Chart

A type of chart that contains both bars and a line graph. Typically, individual values are represented in descending order by bars, and the cumulative total is represented by the line. The chart is named for the Pareto principle after Vilfredo Pareto, a noted Italian economist. The left vertical axis is the frequency of occurrence and the right vertical axis is the cumulative percentage of the total number of occurrences, total cost, or total of the particular unit of measure. Since the values are in decreasing order, the cumulative function is a concave function.

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