Business Intelligence and Strategy Data Science

The Pareto Principle

Pareto Principle

Pareto principle or 80/20 law or law of vital few , states that 80% of the conseuences are caused by 20% of the causes . The Pareto principle is discovered hundread years ago by the italien economist and sociologist Vilfredo Pareto .

It was back then only in observation related to land owners : 80% of the land was owned by 20% if the population . Then he carried out a survey on other countries and found to his surprise => the same distribution is applied…

The pareto principle was considered over the time as an axiom , and used on many fields .

In mathematics : the 80/20 is followed by the pareto distribution .

In software engineering for the optimization efforts .

In Sports : 20% of the exercices and habits have 80% of the impact .

In health and safety : 20% of the hazards accounts for 80% of the injuries …

etc …