There are millions of sperm in the male reproductive system and billions of stars in the universe. On apple trees, the number of apples greatly exceeds, the required number of new trees. Look at how the nature of the world around us works. In fact, this confirms the fact that nothing in our life is predetermined.Īnd it really is. According to this law, when we undertake new initiatives, we need to initially put at least 5 tries in any new project to test our strategy and get the result. The principles of Pareto law have been used extensively to perform benchmarking in a wide variety of industries. This allows you to use the data visualization template in Excel for other purposes, where the values are absolutely not correlated with each other.Ĭomparison chart for risk management plan analysisĪs a second example, let's consider a more complicated version, but very close in subject matter. This makes it possible to separately change the two values independently of each other: This switch can be used to unlink the two values. But if necessary, this template also provides the ability to compare two independent values that are not correlated in any way.Īs you can see in the figure there is an additional button with the "lock" icon. In a similar way, using the same template, you can present two interrelated values of the law of the golden ratio 62% by 38%, etc. Accordingly, there are visual changes in the two pie charts: When the first value changes, the second value changes proportionally. The structure and principle of a comparison chart in Excel In one of his works he gives the example of how in Italy 20% of elite households receive 80% of the income. Pareto was a critic of democracy calling it "plutodemocracy," arguing that such politics has its own universal law in which the elite always cheats the masses. He also suggested that it be called a law after the Italian engineer, economist, and sociologist Vilfredo Federico Damaso Pareto, who was born in France in Paris (-). Interesting fact! The universal principle of distribution according to the Pareto rule was noticed in 1941 by Joseph Juran, an American expert in the field of quality. Recall that Pareto law of distribution says: "only 20% of all invested efforts get you 80% of the result, while the remaining 80% of efforts get you the remaining 20% of the final result". Perhaps the simplest example of applying such a creative data visualization design is the Pareto law representation of interrelated empirical values (obtained experimentally). For example, the infinity symbol, the number 8 or the link, etc. The harmonious merging of two pie charts forms several associations in everyone's imagination at once. Visualizing Pareto rule on a comparative chart in Excel