Why "Pareto 80/20" Vilfredo Pareto (1848 - 1923) was one of the largest Italian economy has been as you can see why he died in 1923, but his ideas and in particular what is called the "80/20 law" or "Pareto Principle" is still valid and shows a clear key to understanding the reality.
Let me explain.
Pareto in 1897, studying the distribution of income, showed that in a given region only a few individuals possessed the most wealth.
This observation inspired the so-called "80/20 law", which possimao summarized as follows: "
most of the effects is due to a small number of cases .
According to the "80/20 law" (values \u200b\u200b80% and 20% are obtained by empirical observations of many phenomena and are approximate), in typically 80% of the results depends on 20% of cases. This principle can have various practical applications in various fields, such as:
- economy: 80% of the wealth is owned 20% of the population (but of course actual values \u200b\u200bvary between countries and periods). Or: 20% of the sellers is 80% of sales, and the remaining 80% of trade is only 20% of sales.
- quality: the 20% of the possible types of failure in a production process generates 80% of total non-compliance. Or 80% of complaints come from 20% of customers.
- information: 80% of the execution time is used by only 20% of the instructions of a program. Or 80% of user operations are due to 20% of the features available to an application. 80% of coding errors can be attributed to 20% of the modules. I want to add
- everyday life : 80% of daily time (I keep MOOLTO below), is a dediacato things we need but we do not want to do, while we devote only the remaining 20% to our interests, and someone wants to denial?
That said, this blog is not dedicated to Pareto, Pareto but as attempts to describe the reality that there cinrconda explaining the numbers supplied to us, trying to translate them into something tangible.
Besides, I feel free, and so those who want to participate, to express opinions on the matter, without ever transcended by education and by the rules of civilized behavior.
[about Pareto taken from Wikipedia.it]