CPIM Practice Exam

A Pareto chart visually represents the principle that a small number of causes often lead to a large percentage of the effects, which is known as the 80/20 rule. This chart organizes data to showcase how various factors contribute to a particular outcome or problem. It typically displays the frequency or cost of problems in descending order, allowing you to see which issues are the most significant contributors. The chart helps identify the 'vital few' causes that should be prioritized for improvement. Options that suggest uniformity (like uniformly representing the entire data set), comparisons between two variables, or focusing solely on time-series data do not accurately capture the essence of a Pareto chart, which is specifically designed to highlight discrepancies in frequency or impact across a range of factors and emphasize the most impactful contributors to a given issue.