Which of the following best illustrates the "80-20" principle?
A)Eighty percent of our products are sold in 80 percent of our territories.
B)Sales increased 15 percent last year.
C)Seventy-two percent of our customers account for only 12 percent of our sales.
D)Volume increased 80 percent,but profits increased only 20 percent.
E)Total sales increased 12 percent,but sales in the western region declined 3 percent.

Question

Quizplus · Accepted Answer

The "80-20" principle, also known as the Pareto principle, states that roughly 80% of effects come from 20% of causes. In this case, 72% of customers only account for 12% of sales, illustrating the principle that a small percentage of customers are responsible for a large percentage of sales.

Which of the Following Best Illustrates the "80-20" Principle