Definitions

1. noun

A principle in statistics that describes how a small proportion of causes often generate a disproportionately large proportion of the effects, often used to describe a phenomenon in business, economics, and social sciences.

“The company’s sales are following the Pareto principle, with a small number of items accounting for most of their revenue.”

2. proper noun

Wilhelm Pareto, an Italian philosopher and economist, known for his work on the concept of the Pareto principle.

“The economist studied the work of Pareto and its application in modern finance.”