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General Glossary Term


Pareto’s Rule

The 19th century thinker, Vilfredo Pareto , after whom Pareto charts are named, essentially formulated the famous 80:20 rule of distribution. He noticed in Italy that 80% of the country’s wealth was owned by 20% of the people. Today, we are used to the distribution...

Pareto Analysis

An analysis that compares cumulative percentages of the rank ordering of costs, cost drivers, profits or other attributes to determine whether a minority of elements have a disproportionate impact. For example, identifying that 20 percent of a set of independent...

Occam’s Razor

A logical principle attributed to William of Ockham (1285-1349, also known as the law of parsimony, or the law of simplicity is often quoted in stronger forms as in the following statements: “If you have two theories which both explain the observed facts then...

Median

The median is the middle value, when all values are arranged from highest to lowest. The median is considered by statisticians to be a better indicator than the average or mean because it is less skewed by unusually high or low values. The number which rests between...