A theory which states that if a larger number of people, or agents are contributing to any result, the major part of the portion, around 80 percent is because of the minority, around 20 percent. Investigations and theories have stated that the sales of a firm were generated commonly by only 20 percent of the customers. The Pareto Principle is based after its founder, Vilfredo Federico Damaso Pareto, and is also known as the principle of imbalance. However, it is not a scientific process.

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