 Hi, this is Dr. Don, and I have a problem today out of Chapter 2 in most statistics books about descriptive statistics, and we need to create a Pareto chart. Well, what is a Pareto chart? Well, the name comes from the Pareto principle, which you may know as the 80-20 rule, and that says that for many events, roughly 80% of the effects come from 20% of the causes. Now, the Pareto principle was named after Phil Freyto Pareto, who was an Italian economist. And in 1896, he made the observation that 80% of Italy's wealth belonged to only 20% of the population. So, let's look at a typical Pareto chart. Okay, here is a chart. Now, this is of a restaurant's complaints, and they surveyed their customers, and they came up with the top 10 complaints and the counts, and they range from small portions, which is the most frequent. The next most frequent is wait times, and it goes all the way down to the 10th most frequent, which is food not fresh. And so, we've got a vertical bar chart here with the counts on the x-axis and the categories on the y-axis. Now, we generally use Pareto charts with categorical qualitative data, but you can use it for quantitative data where you bend your quantitative data into categories, and then you can plot a Pareto chart from that quantitative data. Now, on a complete Pareto chart, you also have another line plotted, which is the cumulative percentage of the counts as you go from the most frequent count to the smallest count. You can see we go from roughly 40% up to right at 80%, which matches the Pareto, and then it flattens out as you get over here toward the 10th complaint. So that is the typical Pareto chart. Now, let's make it using Excel. Okay, these are the data that were used to plot that chart. Now, we've got the data, and they're in the form of records. Row two here is the record that contains the count for food too salty. Row three is the record that contains the food not fresh in that count. So we've got to keep these two columns together to maintain the accuracy of these counts. But we've got to re-sort these, reorganize these from largest to smallest before we plot them using Excel. So what I'm going to do is just click here in the column B, which is the count, and then I'm going to go to data, and I'm going to sort, and we don't want smallest to largest, we want largest to smallest. And I'm going to click OK, and Excel is smarter to say we've got to keep those records together, and it sees the adjacent column, and it sorts it properly. Now, if you didn't click inside the data itself, Excel will ask you, do you want to expand this selection to whatever area, and then you can expand it. But here we've got what we need already. We need to get the relative frequency, which is just equal to the count in that particular complaint or category, divided by the total, which I don't have yet. So I'm going to escape out of that, and we're going to get the total error quickly equal SUM sum, and I'm going to sum these up to get a total of 1965. Now I can get my relative frequency equal to the count divided by the total down here, and I want to lock that formula down using the function for key to lock that cell, hit enter. Now I've got the relative frequency for the first complaint, and because I locked down, I can drag that formula down through the other nine complaints to get the relative frequencies. Now we want to plot the cumulative, so we just need to add those up. Equal, that's the frequency for the first category, and the second category, we're just going to take that plus its relative frequency, and that gives the cumulative for the first two, and because these things are now relative, I can just drag those formulas down to get my cumulative relative frequency. Okay, now we want to get our chart, and I'm just going to highlight the complaints, drag it over to get the counts, hold down the control key, and then get my cumulative relative frequencies there. Then I'm going to go to insert, recommended chart, and look down for, it's kind of hard to see there, but you can see it's auditioning it. It's got both my count and my cumulative. You can't see the cumulative, we'll fix that. I'm going to click OK, and now we've got the basic chart, and we need to get the cumulative set up so that we can see it. We just need to click in the chart, go to change chart type, and we want now a combo chart, and we want a line, which is started there. I want on a secondary axis, click OK, and click OK. Now we've got our basic chart. All we need to do is add the axis titles, and I want to clean up this, the cumulative percent, select that with a left click, then right click, format the axis. I want to change the max to 1.0, and then we're going to change the number itself to, instead of general, to percentage, and we're going to get rid of the decimal places. So now we've got our basic chart. If we want to edit the chart further, I'm going to click there for my title, go up here to my format bar, hit enter, and I want to select the title I want, hit enter. Now I've got the title there in my chart. I'm going to close this out of the way, and then I want to add on my axis titles, and I'm going to click that first axis title, clicking the format bar equal, and I'm going to go over here into count, hit enter, and then I'm going to go to axis title from x axis, and these are the complaints. I'm going to hit equal, complaint, enter, and then over here for the auxiliary axis, hit equal, and go into that title there, cumulative, relative frequency, which is the same thing as percent. So there's our chart. I hope this helps.