The Plymouth Student Scientist
Document Type
Engineering, Computing and Mathematics Article
Abstract
The Pareto Principle (also known as the 80-20 rule) states that for many phenomena, about 80% of the consequences are produced by 20% of the causes. In this article we discuss the Pareto Principle and its importance in real life problems, describe some mathematical model related to it and also address the concept of the Lorenz curve and Gini coefficient. We tested two sets of real life data to see if the Pareto principle applies to these aspects. For the Forbes list in 2012, we found that 20% of the richest people own 56.72% of the money. For the world Gross Domestic Product (GDP) in 2011, 20% of the richest countries in the world have 91.62% of the total amount of money.
Publication Date
2014-07-01
Publication Title
The Plymouth Student Scientist
Volume
7
Issue
1
First Page
140
Last Page
148
ISSN
1754-2383
Deposit Date
May 2019
Embargo Period
2024-07-03
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Recommended Citation
Dunford, Rosie; Su, Quanrong; Tamang, Ekraj; and Wintour, Abigail
(2014)
"The Pareto Principle,"
The Plymouth Student Scientist: Vol. 7:
Iss.
1, Article 4.
DOI: https://doi.org/10.24382/swfr-wr17
Available at:
https://pearl.plymouth.ac.uk/tpss/vol7/iss1/4