Todd Harris and Associates,a New York sales promotion agency,discovered from an analysis of its files that one-quarter (or 25 percent)of its clients generated more than three-quarters (or 75 percent)of its fees and commissions.This is an example of what classic concept?
A)the two quarter gap
B)the 80/20 rule
C)the law of usage
D)the 75/25 rule
E)Parkinson's Law

Question

Quizplus · Accepted Answer

This is an example of the 80/20 rule or Pareto Principle, which states that roughly 80 percent of effects come from 20 percent of causes. In this case, 75 percent of fees and commissions were generated by 25 percent of clients, which is close to the 80/20 ratio.

Todd Harris and Associates,a New York Sales Promotion Agency,discovered from an Analysis