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Explanation: From The Clinician's Black Bag of Quality Improvement Tools: "The Pareto diagram is named after Vilfredo Pareto, a 19th-century Italian economist who postulated that a large share of wealth is owned by a small percentage of the population. This basic principle translates well into quality problems - most quality problems result from a small number of causes. Quality experts often refer to the principle as the 80-20 rule; that is, 80% of problems are caused by 20% of the potential sources.
A Pareto diagram puts data in a hierarchical order, which allows the most significant problems to be corrected first. The Pareto analysis technique is used primarily to identify and evaluate nonconformities, although it can summarize all types of data."