Pareto's Law

8/18/2019 Pareto's Law

http://slidepdf.com/reader/full/paretos-law 1/17

PROBABILITY AND STATISTICSPARETO’S LAW

Jaime Aragón Aragón

National Autonomous University of Mex



VILFREDO PARETO

Vilfredo Federico Damaso Pareto as a! italia! e!"i!eer# sociolo"ist# eco!omist# $olitical scie!tist a!d $%i



'e fo(!d t%at ro("%l) *+ $erce!t of t%e $eo$le i! %is co(!tr) domi!a$erce!t of t%e ealt%&



PARETO’S LAW

The Pareto Principle is known by many diferent names, inc

*The Pareto Law*Paretos Law*Pareto Theory*The !"#$" %ule*The !"#$" Principle

*Paretos !"#$" %ule*The Principle o& 'mbalance*The Principle o& Least (fort*The %ule o& the )ital ew

*And many other +ariations*



PARETO’S LAW

-,+ . of t%e o(t$(t from a "i/e! sit(atio! or s)stem isdetermi!ed 0) *+ . of t%e i!$(t1



P2T ANOT'ER WAY

Ro("%l) ,+. of t%e effects come from *+. of t%e ca(



Also reco"!i3e t%at t%e !(m0ers do!’t %a/e to 0e -*+.1 a!d -,+.1 e5e) $oi!t is t%at most t%i!"s i! life 6effort# reard# o(t$(t7 are !ot dist

e/e!l)# some co!tri0(te more t%a! ot%ers&



I! a $erfect orld# e/er) em$lo)ee o(ld co!tri0(te t%e same a

E/er) 0(" o(ld 0e e8(all) im$orta!t&

E/er) feat(re o(ld 0e e8(all) lo/ed 0) (sers&Pla!!i!" o(ld 0e so eas)&



B(t at least o! Eart% Pla!et# t%is does !ot %a$$e!&



T%e Pareto Pri!ci$le %el$s )o( reali3e t%at t%e ma9orit) of res(lts commi!orit) of i!$(ts



o matter i& you are (ngineer, Philosopher, (cono&armer, ta-i dri+er, mason...the Paretos Law has applied to almost e+ery human endea+or.



SO:E APPLICATIONS OF T'E PARETO’S LAW

$"/ o& workers contribute !"/ o& results0 ocus orewarding these employees.




$"/ o& bugs contribute !"/ o& crashes0 ocus on these bugs 1rst.




$"/ o& customers contribute !"/ o& re+enue0 ocsatis&ying these customers.




$"/ o& items o& a construction budget, correspon!"/ o& the total budget0 ocus on those items.



DON’T FOR;ET IT<

Wor5 less a!d do more 0) a$$l)i!" t%e Pareto’s La to )o(r tas5 list



T'AN= YO2

Documents

Pareto's Law