A Pareto chart is a specialized type of bar chart that displays categories in descending order of frequency or cost (time or money), and a line chart representing the cumulative amount12. The chart effectively communicates the categories that contribute the most to the total1.
Pareto charts are primarily used to help teams identify the most significant data in a data set, allowing teams to focus on the data that will enable them to have the most substantial impact3. In other words, these graphs identify the 20% of categories that are responsible for 80% of the outcomes1.
Pareto charts are powerful tools for guiding decision-making and problem-solving endeavors in an organization1. They are useful for identifying the most frequent outcome of a categorical variable4.
Therefore, a Pareto chart can be used to establish priorities for improvement (Option C), rather than graphically displaying a process (Option A), displaying variation (Option B), or establishing a relationship among variables (Option D).
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