The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes (the "vital few"). Other names for this principle are the 80/20 rule, the law of the vital few, or the principle of factor sparsity.
What is the Pareto principle?
The Pareto principle also known as the 80/20 rule or the law of the vital few, states that roughly 80% of consequences come from 20% of causes. For example 80% of revenue comes from 20% of customers (the vital few).