Which of the Following Best Illustrates the 80-20 Principle

question 70

Multiple Choice

Which of the following best illustrates the 80-20 principle?

• A)Our company's sales increased 80 percent last year,but the industry's volume went up only 20 percent.
• B)Sixty-eight percent of our customers account for only 12 percent of our sales.
• C)Company volume increased 10 percent,but sales in territory A decreased 4 percent.
• D)Eighty percent of our customers account for 80 percent of our sales;20 percent of our customers account for 20 percent of our sales.
• E)Eighty percent of our territories usually are not profitable.

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Definitions:

Fallacy of Division

An erroneous inference from the characteristics of an entire set or group about a member of that group or set.

Amphiboly

An argument that contains a grammatical mistake which allows more than one conclusion to be drawn.

Appeal to Ignorance

A logical fallacy that occurs when one argues that a proposition is true because it has not yet been proven false, or vice versa.

Appeal to Ignorance

A logical fallacy where it's claimed that something is true simply because it has not been proven false, or vice versa.