Explain the Concept of the 80/20 Rule and Why It

question 36

Essay

Explain the concept of the 80/20 rule and why it is important to marketers.

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Definitions:

Relative Frequency

The ratio of the number of times a specific value or event occurs to the total number of occurrences in a given dataset.

Population

The entire group of individuals or instances about whom the research is concerned.

Expected Value

The weighted average of all possible values a random variable can take on, with the weights being the probabilities of each outcome.

Loan Applications

Formal requests submitted by individuals or businesses to borrow money from financial institutions.