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Friday, January 15, 2016

80/20 Principle Explained

80% of all events are possible because of 20% of the causes

Examples:


  • 20% of all people in the world own 80% of the money in the world.

  • 80% of the plants grow out of 20% of the seeds.

The actual percentages can vary, e.g. 70/30; 90/10

This formula has been developed by Pareto.

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