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Question
Explain the following term with proper example:
Pareto’s Law formed the basis for a technique. Name it.
Solution
The principle is named for Vilfredo Pareto, an Italian economist who studied land ownership in Italy in the early 1900’s and found that roughly 20 per cent of the population held title to about
80 per cent of the land. Pareto’s law has applications throughout science as well as business, including inventory control, where it forms the basis for a technique called ABC analysis.
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