A pareto chart is a chart that visualizes the top 20% of an income distribution with a dot. The dot represents the average income in that area.
The pareto chart is a popular way to visualize the economic system. It describes how the wealthy manipulate the system to maintain and increase their wealth.
How It Is Used
The pareto chart is most commonly used in middle and upper class households that do not exceed a certain amount of income. For instance, if you earned $50,000 for three years, you would make the middle class threshold of $300 per week.
You could easily make the assumption that $300 per week is what people working at $50,000 spend their time on, so you would create an entry for that on your pareto chart.
Contents:
Select Stat > Data Analysis
A Pareto chart is a graph that shows you distribution of values across a range. The term pareto comes from the Latin word for “around half.”
A pareto chart is created by creating a range of values and then marking off the percent that has that value. The percent refers to how much of that value is in the chart.
For example, let’s say you want to create a chart showing your monthly bill at your electricity company compared to the average monthly bill in your area. You would create a small group of bills below $100 and raise the average bill in your area above $200.
This creates a pattern of lower bills in general around $200 and increases as the price goes up until it reaches $300, where it tends to drop below $200. You can do this with gas and groceries as well.
Select Pareto from the drop-down menu
Once you have your data in Minitab, it is time to make a parataphe chart. You do this by going to Parataxis: > Create Parataxis Chart.
This creates a new chart that can be dragged around and moved as you work with your data.
Parataxis charts show you the distribution of your data in broad, horizontal bands. These bands represent percentiles, and are used to measure your success as an investor. A higher percentage point-percentile means you were more successful in finding investments at the bottom of the market.
You can create as many parataxis charts as you want, using different values for your investors and the percentage that they belong to.
Enter your values into the box below and press OK
Then, your computer will display a chart similar to the one in the first picture. You can now make changes to your chart to update your data or add new information!
This process can be done in different ways, so do not worry about being lectured if you do not do this well. Just keep trying and you will eventually succeed!
The trick is to use different sized boxes and lines to represent your income levels. The smaller the box, the greater the amount of money you will have below that level. The more lines you have, the less one has to make up the difference with less income.
Once you have established a pareto chart that represents your finances, go back into Minitab and take some time to analyze your chart using Pareto charts. This can help tell where errors are in your data and give you an accurate picture of your finances.
Confirm your values appear in the correct places
If you make a value-confirmation chart, you’ll see that some of your values appear in the correct places. For example, showing that spending money on clothing and entertainment makes you happy appears to confirm that value.
It’s similar to the way that finding a place that matches your values confirms that idea. You know it’s a good fit when things match!
Confirming your values shows that you are paying attention to what is important to you. It can help you understand how to achieve clarity on what you want out of life.
When looking at the chart, remember which values look the most invisible and hidden values are below those which appear above the line in red. This shows which values are being undervalued by life events and my lifestyle.
Your pareto chart should appear, now you can adjust the X-axis and Y-axis as you wish
Once you have created your chart, it is time to make changes to the chart. You can now move the diamonds and circles around as you wish!
To do this, simply click on the Home button at the bottom of the screen, then click on Make Chart > Add a Box or Marker > Change Circle Shape > Add a Diamond Shape, and so on.
This will allow you to create as many pareto charts as you wish! You can also add lines between boxes if you want.
Making a pareto chart in Minitab is very simple, just remember what parts of the data are important and create your charts accordingly.
Save your graph and use it however you wish!
Once you have your graph, you can save it in many ways. You can send it to yourself via email, upload it to a website, or even just keep it on your computer.
Either way, once you do this, you cannot simply click the ‘save as’ button and send the file to yourself. You must first download it to your computer and then upload it to your Minitab test account.
This is very important to do before you start working with the chart because if you try to do this before, your Minitab will not allow you to save the chart!
It is also important that when you upload your chart, make sure that all of your data is entered correctly. If there are any invalid data entries listed, make sure they are removed before sending in the file.