Saturday, September 27, 2008

Pareto Analysis

there is this very interesting topic that can be applied in almost everything. introducing - Pareto Analysis.
Pareto Analysis explains that the monority can sometimes produce a more clear result than the majority mainly because of the minority will hold the larger amount of buying power. this theory can be seen in a shopping mall for example, the minority will be the rich and extreme shoppers whereas the majority will include normal people who purchases only what they need. it is clear that more profit will come from the minority.
the same principle can be used to explain even friendships. it is common to have many friends, best friends, classmates, etc etc. if there is a decision to make, maybe something important, you'll see that your choice will only be influenced by a few people which will be the minority compared to most of the other people who would end up in the majority group. this is because you have the trust in them. for all we know, the minority could include people you have just met !

try apply this principle in life and you could be surprise how many things can fit in !

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