Which of the Following Statements About Pareto Charts Is True

question 14

Multiple Choice

Which of the following statements about Pareto Charts is true?

• A) They are based on the principle that 20% of the problems are created by 80% of the effects
• B) The first few items in a Pareto chart should be ignored as they are the least problematic
• C) They provide a graphic representation of the most "vital few" issues that exist in a process in a ranked order
• D) The provide a frequency histogram of potential errors in a process

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Definitions:

Vicariously Liable

A legal principle where one party is held responsible for the actions or omissions of another party, typically in employment relationships.

Secured Creditor

A lender or creditor that has the right to claim specific assets of the borrower if the debtor fails to pay back the owed money.

Debt Commitment

An obligation by an entity to repay borrowed money, typically documented in a formal agreement.

Individual Bondholders

Individuals or entities that own bonds issued by corporations, governments, or other organizations, providing a loan to the issuer in exchange for periodic interest payments and the return of the bond's principal at maturity.