Excel Techniques for 80/20 Data Analysis (Pareto Principle)

Ways to apply the 80/20 rule (also known as the Pareto Principle) in Excel and save hours.

Imagine you're working on a sales report, trying to identify the key factors driving your revenue. But with so much data to sift through, it feels overwhelming.

That's where the Pareto Principle, or the 80/20 rule as it’s commonly known, comes in handy. But it can be tedious and time-consuming finding the top 20% of factors that contribute to 80% of your results.

In this video, I'll show you how to use Excel's powerful tools to streamline your analysis and easily apply the Pareto Principle to your data.

This will help you make smarter decisions by uncovering the most significant insights hidden within your data.

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2:11 Technique №2
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7:28 Technique №5

#Excel #ExcelProductivity #ParetoPrinciple

[MyOnlineTrainingHub]

❓What's one area in your work where you suspect the 80/20 rule applies?

[CurtStrength]

Excellent! Such a good one to share with small business owners who have never worked with a data analyst!

[Excelambda]

Great video !! ✌
For fun a lambda: PARETO(rf, v) rf: row fields vector ; v: values vector
=LAMBDA(rf, v,
LET(
g, GROUPBY(rf, v, SUM, , , -2),
IFNA(HSTACK(g, SCAN(0, DROP(TAKE(g, , -1), -1), SUM) / TAKE(g, -1, -1)), "")
)
)

call:
=PARETO(Actual[Cost Element], Actual[Actual])
✌

[wesluckey]

Love all your training videos. You are my favorite Excel teacher.

[mohammadj.shamim]

Absolutely wonderful. I love both the scenarios you come up with and the tricks you put into play.

[kennethburkholder]

Good stuff! Thanks for the concise, well-organized presentations. This is one channel where I don't use faster speeds because there's no unnecessary "fillers".

[leorc]

Always right to the money, easy and smooth techniques!

[PaulEBrownbill]

thanks, the Pareto chart will be a very helpful tool

[goldendice]

Thanks a lot for showing such useful idea to get the best out of excel😊

[Azhar_Khan]

Thanks Mam for sharing awesome techniques to save time and enhance our skills

[JulianFernandez]

thanks so much, you wise and beautiful lady

[adhamm]

Thank you dear. We need a tutorial on trim, trimmean, trimrange .:. functions..also datedif function. How and when can we use them efficiently.

[gaiustacitus]

A Pareto distribution, also known as an ABC analysis, actually follows an 80/15/5 distribution. It is most useful for managing inventory, where the top 20% of parts account for 80% of value by purchase price or manufacturing cost. Inventoried items are categorized as: A - the 5%, high volume or high cost; B - the 15%, medium volume or medium cost; or C - the 80%, low volume or low cost.

The medication error analysis near the start of the video is a prime example of a misapplication of the Pareto Principle. While the unauthorized drug and under dose collectively account for less than 2% of errors, both could lead to fatalities.

Misapplication of the Pareto Principle can lead to disastrous results for a company. It can lead to ignoring emerging markets, new products, new customers, or critical factors having very low rates of occurrence.

[newdimension]

I got a question why is my excel 365 giving me a total of: 40 / 3 = 1333% WTF????