Question

The Pareto Principle implies that 80 percent of the problems come from 80 percent of the causes?

1) True
2) False

Answer 1

The Pareto Principle, also known as the 80/20 rule, states that roughly 80 percent of the effects come from 20 percent of the causes.

Step-by-step explanation:

The Pareto Principle implies that 80 percent of the problems come from 20 percent of the causes?

The statement is actually False. The Pareto Principle, also known as the 80/20 rule, states that roughly 80 percent of the effects come from 20 percent of the causes. This principle is often used to illustrate the unequal distribution of outcomes, where a small portion of the inputs or factors contribute to the majority of the results.

For example, in business, it is often observed that roughly 80 percent of a company's revenue comes from just 20 percent of its customers. In project management, it is commonly found that 80 percent of the issues or problems arise from only 20 percent of the project tasks.