Paretos Rule

A Dictionary of Finance and Banking,  January, 1997  

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Pareto's Rule (80/20 rule) A rule originally applied by the economist Vilfredo Pareto (1848–1923) to income distribution, i.e. 80% of a nation's income will only benefit 20% of the population. It can be widely extended; for example: 80% of value is locked up in 20% of inventory; 80% of car breakdowns can be fixed by 20% of the spare parts ...

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