Pareto chart
A Pareto chart ranks categories from most to least frequent as bars, with an overlaid cumulative-percentage line showing how few causes account for most of the total.
See it move
A customer-service team logs 200 complaints across five causes, ranked from most to least frequent: shipping delay (90), billing error (50), wrong item (30), damaged package (20), and other (10). The cumulative percentage reaches 45% after the first cause and 70% after the first two, showing that two causes already explain most of the total.
The formula
Variables
- Cumulative percentage through the k-th ranked category
- Frequency of the category ranked i
- Total number of observations
Gives the cumulative percentage plotted on a Pareto chart through a given ranked category.
Check yourself
A factory logs 150 defects across four causes, already ranked from most to least frequent: machine misalignment (75), operator error (45), material flaw (20), other (10). On a Pareto chart of these causes, what cumulative percentage do the two largest causes together account for?