The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of the causes (the “vital few”). ... Other names for this principle ...ParetoprincipleFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchFortheoptimalallocationofresources,seeParetoefficiency.StatisticalprincipleaboutratioofeffectstocausesParetoprincipleappliedtoraisingfundsTheParetoprinciplestatesthatformanyoutcomes,roughly80%ofconsequencescomefrom20%ofthecauses(the“vitalfew”).[1]Othernamesforthisprinciplearethe80/20rule,thelawofthevitalfew,ortheprincipleoffactorsparsity.[2][3]ManagementconsultantJosephM.Jurandevelopedtheconceptinthecontextofqualitycontrol,andimprovement,namingitafterItalianeconomistVilfredoPareto,whonotedthe80/20connectionwhileattheUniversityofLausannein1896.[4]Inhisfirstwork,Coursd'économiepolitique,Paretoshowedthatapproximately80%ofthelandinItalywasownedby20%ofthepopulation.TheParetoprincipleisonlytangentiallyrelatedtoParetoefficiency.Mathematically,the80/20ruleisroughlydescribedbyapowerlawdistribution(alsoknownasaParetodistribution)foraparticularsetofparameters,andmanynaturalphenomenahavebeenshowntoexhibitsuchadistribution.[5]Itisanadageofbusinessmanagementthat"80%ofsalescomefrom20%ofclients".[6]Contents1Ineconomics2Incomputing3Insports4Occupationalhealthandsafety5Otherapplications6Mathematicalnotes7Equalitymeasures7.1GinicoefficientandHooverindex8Seealso9References10Furtherreading11ExternallinksIneconomics[edit]Pareto'sobservationwasinconnectionwithpopulationandwealth.Paretonoticedthatapproximately80%ofItaly'slandwasownedby20%ofthepopulation.[7]Hethencarriedoutsurveysonavarietyofothercountriesandfoundtohissurprisethatasimilardistributionapplied.Achartthatgavetheeffectaveryvisibleandcomprehensibleform,theso-called"champagneglass"effect,[8]wascontainedinthe1992UnitedNationsDevelopmentProgramReport,whichshowedthatdistributionofglobalincomeisveryuneven,withtherichest20%oftheworld'spopulationgenerating82.7%oftheworld'sincome.[9]Amongnations,theGi