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- 06 Jul
Pareto and the 80/20 Rule
Vilfredo Pareto (1848-1923) was a famous Italian economist who, amongst other things, derived some interesting relationships between income levels and the number of people who received more than that income.� Anecdotal evidence credits Pareto with the original recognition that 80% of the wealth is owned by 20% of the people � the original 80/20 rule.� His rule originally referred to 80% of the land in Italy being owned by 20% of the population, but he also observed that 20% of the peapods in his garden contained 80% of the peas.
The rule has now been extended into all sorts of areas (that often have little supporting evidence behind them).� The one I like: that 80% of rules-of-thumb only apply 20% of the time.
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IanRunge
https://ianrunge.com
