The
idea that relatively few factors are the cause of the majority of cases. This is often referred to as the 80-20 rule: 80% of the
problems are created by 20% of the causes.
An example: 80% of the machine breakdowns is caused by 20% of the machinery. There is not a one-to-one connection between machine and breakdown so solving the problem is a less overwhelming task. Once one has identified the problem machines, they can focus on those instead of fixing each and every one.
A different spin: 80% of the purchases are made by 20% of shoppers. Once a firm has identified those shoppers, they can start treating them specially and offering special promotions. Ever had one of those buy 9 coffees get the 10th free cards? That is the Pareto concept applied.
Pareto on E2?: 80% of nodes are created by 20% of noders. The rest of us just can't get past novice - argh!
NB: Pareto analysis is named after 19th century Italian economist Vilfredo Pareto.