LinkedInwithBackgroundYourPrivacyRightsInvestopediaandourthird-partypartnersusecookiesandprocesspersonaldatalikeuniqueidentifiersbasedonyourconsenttostoreand/oraccessinformationonadevice,displaypersonalizedadsandforcontentmeasurement,audienceinsight,andproductdevelopment.TochangeorwithdrawyourconsentchoicesforInvestopedia.com,includingyourrighttoobjectwherelegitimateinterestisused,clickbelow.Atanytime,youcanupdateyoursettingsthroughthe"EUPrivacy"linkatthebottomofanypage.Thesechoiceswillbesignaledgloballytoourpartnersandwillnotaffectbrowsingdata.ListofPartners(vendors)Weandourpartnersprocessdatato:Activelyscandevicecharacteristicsforidentification.Useprecisegeolocationdata.Storeand/oraccessinformationonadevice.Selectpersonalisedcontent.Createapersonalisedcontentprofile.Measureadperformance.Selectbasicads.Createapersonalisedadsprofile.Selectpersonalisedads.Applymarketresearchtogenerateaudienceinsights.Measurecontentperformance.Developandimproveproducts.ListofPartners(vendors)IAcceptShowPurposesBusinessEssentialsGuidetoMergersandAcquisitionsBusinessBusinessEssentialsWhatIsaParetoAnalysis?ParetoAnalysisisatechniqueusedforbusinessdecisionmakingbasedonthe80/20rule.Itisadecision-makingtechniquethatstatisticallyseparatesalimitednumberofinputfactorsashavingthegreatestimpactonanoutcome,eitherdesirableorundesirable.Paretoanalysisisbasedontheideathat80%ofaproject'sbenefitcanbeachievedbydoing20%oftheworkorconversely80%ofproblemsaretracedto20%ofthecauses.UnderstandingParetoAnalysisIn1906,ItalianeconomistVilfredoParetodiscoveredthat80%ofthelandinItalywasownedbyjust20%ofthepeopleinthecountry.HeextendedthisresearchandfoundoutthatthedisproportionatewealthdistributionwasalsothesameacrossallofEurope.The80/20rulewasformallydefinedastherulethatthetop20%ofacountry’spopulationaccountsforanestimated80%ofthecountry’swealthortotalincome.JosephJuran,aRomanian-Americanbusinesstheorist,stumbledonPareto’sresearchwork40yearsafteritwaspublished,andnamedthe80/20rulePareto’sPrincipleofUnequalDistribu