Pareto Analysis in Power BI
Pareto Analysis is a statistical technique that applies the Pareto Principle to data. This is more commonly known as the 80:20 Rule. The Pareto Principle is based on the presumption that a relatively small number of inputs (20%) have most impact on the results/output (80%). The 80:20 rule can be applied to a wide variety of data in most businesses. Examples include:
- Which 20% of products make up 80% of sales
- Which 20% of customers make up 80% of profit.
- just to name a few