To demonstrate, shown below is an example of inserting a Pareto Chartthat is available to users of Microsoft Excel 2016. This rule can then be used to analyze almost any situation.

Also referred to as the 80-20 principle, it suggests that 80% of the results are produced only by 20% of the efforts.

The principle is derived from the concept that majority of the effects are only brought about by the minority of the causes. The chart is patterned after the famous Pareto Principle, which was then named after Vilfredo Pareto, an Italian economist. The chart also incorporates a line chart which represents the percentage of the total as a cumulative. A histogram can be characterized as a chart displaying columns that are sorted in a descending order, giving attention to the largest values.

Pareto Charts are also known as a sorted type of histogram. One of the most useful is the Pareto Chart because it is properly represents data visually by displaying the largest quantities in a given set of data, including the most frequent terms. Microsoft Excel 2016 introduces a lot of new Charts for us to use in presentations.

Tools menu in excel 2016