Investment dictionary

PARETO ANALYSIS

Pareto Analysis: translation

A technique used for decision making based on the Pareto Principle, known as the 80/20 rule. It is a decision-making technique that statistically separates a limited number of input factors as having the greatest impact on an outcome, either desirable or undesirable. Pareto analysis is based on the idea that 80% of a project's benefit can be achieved by doing 20% of the work or conversely 80% of problems are traced to 20% of the causes.

In its simplest terms, Pareto analysis will typically show that a disproportionate improvement can be achieved by ranking various causes of a problem and by concentrating on those solutions or items with the largest impact. The basic premise is that not all inputs have the same or even proportional impact on a given output. This type of decision-making can be used in many fields of endeavor, from government policy to individual business decisions.

  1. pareto analysis—Pareto analysis translation Pareto analysisstrong Pareto analysis analysis Pareto analysis UKu USu nounu [Cu or Uu] ECONOMICSu WORKPLACEu PRODUCTIONu a method for ...Financial and business terms
  2. pareto analysis—ABC analysis...Англо-український тлумачний словник економічної лексики