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  • Writer's pictureTracy Tran

Pareto Chart in DataInsider

Updated: Aug 21, 2021



WHAT IS A PARETO CHART?


A Pareto chart contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.







20% of the Products account for 80% Sales


WHEN TO USE PARETO CHARTS?


Pareto Chart is used in Paret


o Analysis. Pareto Analysis is a technique used for decision-making based on the Pareto Principle. Pareto Principle is based on the 80/20 rule which says “80% of impacts are due to 20% of causes”.


Consider using Pareto charts when :


  • There is a lot of data and needs to be organized.

  • You want to communicate the top issues to stakeholders.

  • There is a need to prioritize tasks.

  • The relative importance of data needs to be analyzed.


The following scenario is recommended for using Pareto Chart:


  • 20% of products account for 80% of revenue.

  • 20% of household items consume 80% of electricity.

  • 80% of the complaints are from 20% of clients.

  • 80% of the restaurant sale is from 20% of its menu.



STEP BY STEP GUIDANCE WITH DataInsider :


Desired Chart : A Pareto Chart showing the 80/20 Pareto rule between Product Name and Sales.


Step 1. Drag Product Name to X-Axis


Step 2. Drag Sales to Y-Axis


Step 3. Drag Sales to Sorting -> Select Descending








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