The Pareto Distribution / 80-20 Rule

This is a power law probability distribution that is found in all kinds of pools of data ranging from natural phenomena to human activities.

It states that 80% of outcomes are due to 20% of the causes...

• 80% of the wealth is generated by 20% of the individuals in any given hierarchy/domain of competence.
• 80% of the marketing sales is generated by 20% of the marketing efforts.
• 80% of a business's revenue is generated by 20% of its customers.

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