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When
to Use a Pareto Chart
Pareto charts are typically
used to prioritize competing or conflicting "problems," so that
resources are allocated to the most significant areas. In general, though,
they can be used to determine which of several classifications have the
most "count" or cost associated with them. For instance, the number
of people using the various ATM's vs. each of the indoor teller locations,
or the profit generated from each of twenty product lines. The important
limitations are that the data must be in terms of either counts or costs.
The data can not be in terms that can't be added, such as percent yields
or error rates.
Only Attributes
data can be applied to a Pareto Chart.
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