Discussion RoomCategory: Interview QuestionWhat are the steps of Pareto analysis chart?

• Create a vertical bar chart with causes on the x-axis and count (number of occurrences) on the y-axis.
• Arrange the bar chart in descending order of cause importance that is, the cause with the highest count first.
• Calculate the cumulative count for each cause in descending order.
• Calculate the cumulative count percentage for each cause in descending order. Percentage calculation: {Individual Cause Count} / {Total Causes Count}*100
• Create a second y-axis with percentages descending in increments of 10 from 100% to 0%.
• Plot the cumulative count percentage of each cause on the x-axis.
• Join the points to form a curve.
• Draw a line at 80% on the y-axis running parallel to the x-axis. Then drop the line at the point of intersection with the curve on the x-axis. This point on the x-axis separates the important causes on the left (vital few) from the less important causes on the right (trivial many).