question archive The purpose of Pareto analysis is to: A

The purpose of Pareto analysis is to: A

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The purpose of Pareto analysis is to: A. build relationships between issues B. study the distribution of a
dataset C. control problems in a process D. prioritise issues E. determine the natural tolerance of a process

 

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As we know that Pareto Analysis is a statistical technique which is used for decision making to give priority to issues or problems by comparing benefits that will solution will provide.

So Correct option is "D"

This analysis is based on Pareto Principle of 80/20 rule means that 80% issues are caused by 20% causes.

 

Steps of this are

  1. identify the problems
  2. Score each problem
  3. Identify biggest beneficial problem
  4. now priorities issues to solve to get maximum benefit first.

 

So Option (a) , (c) , (b) and (e) are incorrect as these are not part of pareto analysis .