American Association of Family and Consumer Sciences (AAFCS) Practice Test 2025 - Free AAFCS Practice Questions and Study Guide

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What can be said about the problems addressed in a Pareto Analysis?

All problems are equally impactful

20% of problems produce 80% of the effects

In a Pareto Analysis, the principle known as the Pareto Principle or the 80/20 rule is applied, which states that roughly 80% of outcomes come from 20% of causes. This means that in many situations, a relatively small number of problems (about 20%) are responsible for a majority (approximately 80%) of the impacts or effects observed. This principle is particularly useful in prioritizing problem-solving efforts, as it enables individuals and organizations to focus on the most significant issues that will lead to the greatest overall improvement or benefit. Recognizing that a minority of causes can lead to the bulk of the negative effects helps in effectively allocating resources and attention towards resolving those key problems for maximum efficiency.

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Resolving small issues leads to large gains

Only external factors are considered

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