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DEFINITION: A Pareto chart, also called a Pareto distribution diagram, is a vertical bar graph in which values are plotted in decreasing order of relative frequency from left to right. Pareto charts are extremely useful for analyzing what problems need attention first because the taller bars on the chart, which represent frequency, clearly illustrate which variables have the greatest cumulative effect on a given  … 
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GRAPH PLOTTERS DEFINITION (continued): …  system. The Pareto chart gets its name from Vilfredo Pareto, an Italian Economist. In 1906, Pareto noted that 20% of the population in Italy owned 80% of the property. He proposed that this ratio could be found many places in the physical world and theorized it might be a natural law, where 80% of the outcomes are determined by 20% of the inputs. In the 1940s, Pareto’s theory was advanced by Dr. Joseph Juran, an American electrical engineer who is widely credited with being the father of quality control. It was Dr. Juran who decided to call the 80/20 ratio the "The Pareto Principle." Applying … 
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