Pareto's Law

Pareto's Law
Pareto's Law Paˈreto's ˌLaw also Paˈreto's ˌprinciple, Paˈreto's ˌrule noun ECONOMICS
the idea that a small part of something is responsible for a large part of its value. For example, 20% of the work people do produces 80% of the rewards. It is also sometimes called the 80/​20 rule:

• If you are a manufacturer, you can use Pareto's Law to evaluate whether to add to or eliminate part of your product line.

Financial and business terms. 2012.

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  • Pareto’s Law — /pə ri:təυz lɔ:/, Pareto Effect /pə ri:təυ ɪˌfekt/ noun the theory that incomes are distributed in the same way in all countries, whatever tax regime is in force, and that a small percentage of a total is responsible for a large proportion of… …   Dictionary of banking and finance

  • Pareto’s Law — /pəˌri:təυz lɔ:/, Pareto Effect /pə ri:təυ ɪˌfekt/ noun the theory that a small percentage of a total is responsible for a large proportion of value or resources …   Marketing dictionary in english

  • pareto's law — pəˈrād.(ˌ)ōz noun Usage: usually capitalized P Etymology: after Vilfredo Pareto (Marchese di Parigi) died 1923 Italian economist and sociologist : a statement in economics: the distribution of incomes in various countries and in various ages… …   Useful english dictionary

  • Pareto’s law — income distribution in a given economy tends to remain constant …   Eponyms, nicknames, and geographical games

  • law — [lɔː ǁ lɒː] noun 1. [singular, uncountable] LAW the whole system of rules that citizens of a country must obey: • It is against the law (= illegal ) for children to work before they are fifteen. • There were easy profits for businessmen who were… …   Financial and business terms

  • Pareto index — In economics the Pareto index, named after the Italian economist and sociologist Vilfredo Pareto, is a measure of the breadth of income or wealth distribution. It is one of the parameters specifying a Pareto distribution and embodies the Pareto… …   Wikipedia

  • Law and economics — Law and Economics, or economic analysis of law is an approach to legal theory that applies methods of economics to law. It includes the use of economic concepts to explain the effects of laws, to assess which legal rules are economically… …   Wikipedia

  • Pareto — can refer to:*Vilfredo Pareto (1848–1923), Italian sociologist, economist and philosopher; *Paula Pareto (born 1986), Argentine judokaSeveral things named after Vilfredo Pareto:*Pareto chart, an ordered bar chart used in statistical quality… …   Wikipedia

  • Pareto principle — The Pareto principle (also known as the 80 20 rule, the law of the vital few and the principle of factor sparsity) states that, for many events, 80% of the effects come from 20% of the causes. Business management thinker Joseph M. Juran suggested …   Wikipedia

  • Pareto distribution — Probability distribution name =Pareto type =density pdf cdf Pareto cumulative distribution functions for various k with x m = 1. The horizontal axis is the x parameter. parameters =x mathrm{m}>0, scale (real) k>0, shape (real) support =x in [x… …   Wikipedia

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