Test Your Consulting Skills With Suitable Drills
Pareto Principle – Test Your Knowledge
Pareto`s 80-20 principle is a general rule of thumb that describes an unequal distribution between causes and effects. The principle states that 80% of overall results are driven by 20% of inputs. For example: 80% of work requires 20% effort, 80% of a project requires 20% of time, and 80% revenue comes from 20% of clients. When analyzing case problems, the Pareto rule can be utilized to diagnose big issues that might be caused by a much smaller problem. On the other hand, problems that seemingly look huge might result in only a small issue.
Can you apply the Pareto Principle in the right way?
Read each question carefully and choose the response that you think is correct. After finishing the test, you will receive an interpretation of your score.
