How to Create a Pareto Chart in R Programming

Pareto charts strengthen decision-making, a terrific way to discover which variables are influential

The Pareto principle — — in which 80% of a result comes from 20% of a given output— has been often cited in business practices over the years. It is popular as a root cause analysis when faced with several variables and you need to know which are creating the most influence. Even the late Colin Powell had a variation of that rule in weighing the information you have for making decisions.

But what tools are available for identifying that principle within data? A library in R, qcc, can provide answers. It uses the data in a data object to form a Pareto chart. This post will explain how to create and read a Pareto chart. Understanding how to insert data into a diagram like the Pareto chart is a great way to understand the data structure within R, and plan a data model accordingly.

Creating a Pareto chart with R programming

A Pareto chart, or diagram, is a blend of bar and line graphs that displays the given data according to an order of influence. The chart is meant to indicate which data is driving the majority of the results.