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Pareto Chart

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There are many graphs and diagrams available for use by various people for a variety of needs. One of the most commonly-used graphs is the bar graph. This type of graph has several subtypes in itself. One of which is the Pareto Chart or Pareto Diagram.

            A Pareto Chart is a bar graph. The lengths of the bars represent frequency or cost (time or money), and are arranged with longest bars on the left and the shortest to the right (cited in Tague, Nancy, 2004). This chart illustrates the significance of the items in the diagram. A Pareto Chart is the same with the ordinary bar graph in a way that it both uses bars to represent figures. Pareto chart is prepared and analyzed in similar way as the bar graph. The difference lies on the arrangement of the items in the chart. Bar graph does not give much emphasis on the weight or significance of items or components. On the other hand, a Pareto chart highlights the importance of each component in the graph. Sequence matters in this type of chart.

When is then the right time to use a Pareto chart instead of the bar graph? Pareto charts are used mostly in analyzing data, presenting specific components of a data and communicating results of analysis to interested parties. Since this type of chart depicts which components are of greater significance, it is easier for data analysts to interpret the diagram and the results, themselves. Someone would rather use a Pareto chart if he intends to analyze a certain trend, frequency or other problems, usually about quality control management. If analysts would want to concentrate on specific details, most likely they would be using the Pareto chart. To make their workloads easier, they would make use of devices which could help them interpret data faster and easier. Pareto chart also has variances, which attract users to make use of it rather than a bar graph. It can be prepared either by using weighted or comparative Pareto charts which specifically responds to the specific needs of users. It is conclusively advisable then that Pareto chart is ideal for data analysis and interpretations.

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