Comprehensionhard · Past Paper

Read the passage: The 'Pareto Principle', also known as the 80/20 rule, suggests that for many events, roughly 80% of the effects come from 20% of the causes. In business, it often means 80% of sales come from 20% of clients. Question: What does the Pareto Principle describe?

AEqual distribution of results
BAn imbalance where most effects come from a minority of causes
CThe importance of 100% effort
DHow to count to 100

✓ Correct Answer: BAn imbalance where most effects come from a minority of causes

The principle describes an unequal relationship between inputs and outputs (80/20).

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