In a relatively pointless survey, the following data was collected on cars in a Costco parking lot: there were 28 silver cars, 39 brown cars, 27 orange cars, 49 yellow cars, 100 light blue cars, and 19 cars of some other color. If you were to construct a Pareto chart, how would the second bar in the graph be labeled?

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The typical Pareto chart consists of a bar chart, listing the variables in descending order by frequency coupled with a cumulative frequency line graph.

Pareto charts are often used in business, especially in quality control. The basic idea is that 80% of the problems come from 20% of the actions....

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The typical Pareto chart consists of a bar chart, listing the variables in descending order by frequency coupled with a cumulative frequency line graph.

Pareto charts are often used in business, especially in quality control. The basic idea is that 80% of the problems come from 20% of the actions. A store might issue a survey asking for customer feedback on issues with their store. The data gathered is put into a Pareto chart. The first few categories will account for about 80% of the problems (and these will be about 20% of the complaints). This allows management to concentrate on a few issues and make the experience better. (You might research W. Edwards Deming, Joseph Juran, and Philip Crosby.)

In the given example, you would have the following bars reading from left to right: Light Blue (100), Yellow (49), Brown (39), Silver (28), Orange (28), Other (19). The vertical axis represents the frequency as a percent, thus light blue (38%), yellow (19%), brown (15%), silver (11%), orange (10%), and other (7%). There will be a cumulative line chart above the bars.

The second bar will be labeled yellow (and depending on your text either have a height of 49 on a frequency axis or 19 on a frequency % axis), and the point of the line chart above the bar will be at 57%.

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