What Does the Pareto Principle State

question 25

Multiple Choice

What does the Pareto principle state?

• A) A small proportion of effort, people or time (20 per cent) accounts for an equally small proportion of the results (<20 per cent).
• B) A small proportion of effort, people or time (20 per cent) accounts for a large proportion of the results (80 per cent).
• C) A large proportion of effort, people or time (80 per cent) accounts for an equally large proportion of the results (>80 per cent).
• D) A moderate proportion of effort, people or time (35 per cent) accounts for a large proportion of the results (80 per cent).
• E) A small proportion of effort, people or time (20 per cent) accounts for a moderate proportion of the results (35 per cent).

---

Definitions:

Poisson Random Variable

A type of discrete random variable that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events happen with a known constant mean rate and independently of the time since the last event.

Successes Achieved

The accomplishments or favorable outcomes attained in a given project, experiment, or other endeavors.

Random Sample

A subset of individuals chosen from a larger set, where each individual has an equal probability of being chosen, ensuring the sample’s representation of the entire population.

Without Replacement

A sampling method where each selected unit is not put back into the population before the next draw, meaning no unit can be selected more than once.