In the late 19th century, an Italian economist named Vilfredo Pareto observed that 80% of the land in Italy was owned by 20% of the people. As he looked around, he observed this mathematical phenomena in many unexpected places. For example, he noted that 80% of the peas in his garden were produced from 20% of the peapods. As a result, although Vilfredo Pareto is not a household name, the 80/20 rule has found its way into the popular vernacular. In the following exercise, we'll discuss how to build a basic Pareto chart and then how to expand that chart to make it even more useful.
Of course, not every dataset is going to adhere to the 80/20 rule. Accordingly, the following exercise considers loan data from a community bank where ...
