Good, please my is Mr. Wiredu, I have been watching your video during parato charts 1 of 2, where did you get 25,000. I understand the rest, I need the answer quick because I will write the exam next week. thanks
Hi. Thursday in that example was 76% and Tuesday was 84% . So both data points are st equal distance from 80% . How did you pick Thursday as the 80% mark? Also what is the interpretation of the 80% sales being on Thursday (for example let's take Thursday). Interpretation of the Pereto chart not clear
I guess it's just a rough estimation to demonstrate which days are most influential in sales. It doesn't have to be exactly 80-20 (most of the times it won't be like that). Basically the principle is this: 80% of the consequences are caused by 20% of the possible causes.
He could have picked those three days or four days, you're right. However, think practically in this case: do we want to add one whole full day of extra staff/ads/... etc for an increase of only 8%? So he's deciding practically here, although he's not mentioning it.
@@annemontgomery3890 He didn't pick Thursday practically, he picked where the 80% line (coming from the right y axis) intersected with the pareto line. You don't get to make decisions about where it will end up. His line point for Thursday isn't suppose to be on exactly 80% but it's a rough hand drawn example
