To distinguish between the "vital few" and "trivial many" causes of quality issues, which type of graph is appropriate for Walmart?

Study for the Gramling Business Analytics Exam. Engage with multiple choice questions and detailed explanations. Master your business analytics skills and get ready for success!

A Pareto Chart is particularly effective for distinguishing between the "vital few" and "trivial many" causes of quality issues. This chart displays the frequency of problems or issues in descending order, allowing analysts to see which causes contribute most significantly to the overall problem. The principle behind this method is based on the Pareto Principle, or the 80/20 rule, which states that a small number of causes are often responsible for a large portion of the problems.

By using a Pareto Chart, Walmart can easily identify and prioritize which quality issues need immediate attention. The visual representation shows not only the individual contributions of each cause but also a cumulative percentage line that helps to highlight when collectively they account for a significant portion of the total issues. This approach enables effective decision-making by focusing resources on the most impactful areas, thus enhancing quality improvement efforts in a strategic manner.

In contrast, pie charts are better for showing parts of a whole, line graphs track changes over time, and histograms display the distribution of numerical data, none of which provide the focused prioritization that a Pareto Chart offers for quality issue analysis.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy