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Excel charts are a useful tool for data analysts to present information and insights from a large set of data in a visual and easy-to-understand format. One popular type of chart used for analyzing data is the Pareto Chart.

A Pareto Chart is a type of chart that combines a bar graph and a line graph to represent the distribution of a set of data. It is named after the economist Vilfredo Pareto, who discovered the 80/20 rule, which states that 80% of the effects come from 20% of the causes. In other words, a small portion of a dataset often has a significant impact on the overall distribution.

To create a Pareto Chart in Excel, you start by selecting the data you want to use and then going to the Insert tab and choosing the Pareto Chart option. The chart displays the data as a bar graph, with the bars representing the frequency or the total of each item in the dataset.

In addition to the bar graph, a Pareto Chart also includes a line graph that shows the cumulative total of the items, represented as a percentage of the total. This line graph helps to show the impact of each item on the overall distribution and to identify the items that have the greatest impact.

The bars are arranged in descending order, with the largest bar on the left and the smallest bar on the right. This makes it easy to see which items contribute the most to the overall distribution and which items have the least impact.

Pareto Charts are often used to prioritize tasks or to identify areas for improvement. By showing the distribution of the data, they can help data analysts to focus their efforts on the items that have the greatest impact and to allocate resources more effectively.

In conclusion, Pareto Charts are a valuable tool for data analysts to visually represent the distribution of a set of data and to identify the items that have the greatest impact. By combining a bar graph and a line graph, they provide a quick and easy way to prioritize tasks and to make informed decisions based on the information presented.

# Excel Charts for Data Analyst : Tutorial 14 – Pareto Chart

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