According to the Pareto Principle, 80% of the results come from what percentage of the group?

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Prepare for the UCF GEB4522 Data Driven Decision Making Final Exam. Use flashcards and multiple choice questions to study. Familiarize yourself with key concepts and methodologies to excel on the test!

The correct answer is that 80% of the results come from 20% of the group, reflecting the Pareto Principle, often referred to as the 80/20 rule. This principle indicates that a minority of causes, inputs, or efforts typically leads to the majority of the effects or outcomes.

In practical terms, it suggests that in many situations, a small percentage of the factors are responsible for a large portion of the results. For example, in a business context, it’s common to find that 80% of sales come from 20% of clients. Understanding this principle helps decision-makers to prioritize their efforts on the most impactful areas, allowing for more efficient resource allocation and improved results.

The other choices do not align with the principle. For instance, stating that 80% of the results come from 10%, 50%, or 80% of the group misunderstands the distribution of effects, as the essence of the Pareto Principle revolves specifically around the imbalance between a small percentage of inputs driving a disproportionate percentage of outcomes.