A Pareto chart is useful in identifying the most pressing of a number of performance problems facing an entity.

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A Pareto chart is a type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line. It is used to identify the most significant factors in a dataset and is based on the Pareto principle, which states that roughly 80% of the effects come from 20% of the causes. This makes it useful in identifying the most pressing performance problems facing an entity by highlighting the few critical issues that contribute the most to the problem.

A Pareto Chart Is Useful in Identifying the Most Pressing