A Pareto chart, also called a Pareto distribution, is a vertical bar graph in which values are plotted in decreasing order of relative frequency from left to right. Pareto charts are extremely useful for analysing what problems need attention first because the taller bars on the chart, which represent frequency, clearly illustrate which variables have the greatest cumulative effect on a given system. One of the purposes of the Pareto chart is to identify the most significant item which shows where to focus effort. The Pareto chart gets its name from Vilfredo Pareto, an Italian Economist. In 1906, Pareto noted that 20% of the population in Italy owned 80% of the …show more content…
The frequencies, relative frequencies or percentages are represented by the height of the bars. The bars are adjacent to each other. There are three different measures of central tendency indicate the central point around which observations tend to cluster. They are mean, mode and median. Each of the measures of central tendency has different ways of obtaining the data. Besides using calculation to obtain measures of central tendency and measures of diversion, Microsoft Excel also can obtain the data. There are two types of data, first is called grouped data and second is called ungrouped data. Mean is also called the arithmetic mean or average. Mode is the value that occurs with the highest frequency in a data set. Median is the value of the middle term in a data set that has been ranked in increasing order. There are two ways to obtain