1 Reply Latest reply on Apr 17, 2015 8:55 AM by Ken Patton

    Questions about Pareto Analysis

    Cale Zhu

      Hi guys,

       

      I am trying to understand Pareto analysis.

       

      For example, I want to know How is the sales distributed among the different products?

       

      Then I added running total and percent of total table calculation on products.

       

      My questions :

       

      The percentage is different whether I sort the sales based on products or not. So i don't think this analysis is useful. Please let me know what you think about.

       

      Thanks.

        • 1. Re: Questions about Pareto Analysis
          Ken Patton

          For there to be a Pareto, the dimension (e.g. Products) must be sorted. After all, the whole point of a pareto is to understand how the top i% of one dimension comprises the top j% of some measure.  So when we say "the top 20% selling products are 80% of all sales" then of course the Products have to be sorted descending by Sales in order to determine the "top."

           

          So yes, having the Products not sorted would produce a different and unhelpful result. That does nothing to invalidate pareto analysis.