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Today, the editor will share with you the relevant knowledge points about the application of Pareto graphics in data analysis. The content is detailed and the logic is clear. I believe most people still know too much about this knowledge, so share this article for your reference. I hope you can get something after reading this article, let's take a look at it.

The rule of one, two and eight

The 28 rule was discovered by the Italian economist Baredo, who believes that in any group of things, the most important is only 20%, and the remaining 80% is the majority, but it is secondary. According to the Pareto rule, 80% of the problems are caused by 20% of the causes.

Combined with practical applications, for example, 80% of the wealth is in the hands of 20% of the people, while the remaining 80% of the people only own that 20% of the wealth, and for example, 20% of the time in life determines 80% of the achievements, while the other 80% of the time is wasted on 20% of the things. In addition, the product achieves 80% profit, and the remaining 80% of the product only earns 20% profit.

The 2008 rule gives us a lot of inspiration. In our work, we should be good at grasping the principal contradiction, being good at sorting out clues from complicated work, and using resources on the most important and urgent matters.

2 Pareto map

Pareto chart is a kind of chart that arranges the quality problems and quality improvement projects according to the degree of importance. Named after the Italian economist V.Pareto. Pareto diagram, also known as permutation chart, primary and secondary diagram, is a histogram drawn according to the order of occurrence frequency, indicating how many results are caused by the identified type or category.

The following is to draw the Pareto diagram with the help of the EXCEL tool to show the application of the 28 rule in the Pareto graph.

3 operating steps

Step 1: data preparation. Select the sales amount of electrical appliances in a shopping mall, where the proportion = B4/SUM ($B$4:$B$10), the cumulative ratio = SUM ($C$4:C4) / SUM ($C$4:$C$10), and increase the starting point of the line chart in the D3 cell so that the line intersects with the column chart in the lower left corner.

The second step: make the cluster column chart, select the data of the shaded part, and insert the cluster column chart.

Step 3: change the chart type. Select a column chart and right-click to change the series chart type. Change the cumulative share to a secondary axis, a line chart with data markers.

Step 4: format the data series. Click the column chart and set the gap width to 0% in the format of the data series.

Step 5: add data tags. Click the chart, check the "+" sign, select the data label, and display the data label at the top.

Step 6: set the secondary Abscissa axis, click on the chart, check the "+" sign, select the coordinate axis, select the secondary Abscissa axis, and set the position of the axis above the scale line.

Step 7: format the axis. Click on the axis above, click on the tab, select the location of the label as none, and remove the axis.

Step 8: format the axis. Click the secondary axis, click the axis option, and set the maximum value to 1, which is the same as the cumulative percentage value.

Step 9: beautify the chart. Add the chart title, delete the gridlines, mark the highlighted chart area, and gray the rest.

From the image, we can see that the sales of mobile phones, computers and washing machines account for more than 80%. According to the 2008 rule, we can increase the supply of mobile phones, computers and washing machines and maximize profits.

These are all the contents of the article "how to apply Pareto Graphics in data Analysis". Thank you for reading! I believe you will gain a lot after reading this article. The editor will update different knowledge for you every day. If you want to learn more knowledge, please pay attention to the industry information channel.

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