A Bar Chart and a Pareto Chart Both Use Bars

question 34

Essay

A bar chart and a Pareto chart both use bars to show frequencies of categories of categorical data. What characteristic distinguishes a Pareto chart from a bar chart and how does that
characteristic help us in understanding the data?

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Definitions:

Financial Projections

Estimates of the future financial performance of a company, including income, expenses, and net profit.

Top-Down Planning

A planning approach where decision-making starts at the highest level and moves down through the hierarchy of an organization.

Projected Financial Statements

Financial documents that predict a company’s future financial performance based on current trends, assumptions, and expected future events.

Scenario Analyses

A process of examining and evaluating possible events or scenarios the future could hold and their potential impacts on business operations.