Pareto Chart in DataInsider
Updated: Aug 21, 2021
Index 1. What is a Pareto chart?1. What is a Pareto chart? 2. When to use Pareto charts?2. When to use Pareto charts? 3. Step by step guidance with DataInsider3. Step by step guidance with DataInsider
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