Pareto Chart Custom Visual in Power BI | Pareto principal analysis or the 80/20 rule in Power BI

A Pareto chart is a specific type of chart that combines both a bar graph and a line graph. It is named after Vilfredo Pareto, an Italian economist, who developed the concept of the "Pareto principle" or the "80/20 rule." The Pareto chart is used to prioritize and focus on the most significant factors contributing to a problem or situation.

In a Pareto chart, the bars are arranged in descending order from left to right based on the frequency or impact of each category. The left vertical axis represents the frequency or count of each category, while the right vertical axis represents the cumulative percentage of the total. The line graph, known as the cumulative percentage line, starts from the left and increases steadily, reflecting the cumulative percentage of the total.

The Pareto chart visually highlights the "vital few" factors or categories that have the most significant impact, as they typically account for a large portion of the overall problem or result. It helps in identifying the key areas for improvement or decision-making by focusing resources on the factors that will yield the greatest impact.

Pareto charts are commonly used in various fields, including quality management, project management, data analysis, and problem-solving, to identify and prioritize areas for improvement, cost reduction, or process optimization.
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