Use the 80/20 Rule with Moderationby@felipepenha
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Use the 80/20 Rule with Moderation

by Felipe Penha6mMay 28th, 2020
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The 80/20 rule has been perpetuated along the lines: "80% of the effects come from 20% of causes" The danger is making bad decisions based on these stretches, possibly incurring into financial loss. In Statistics, these patterns are called distributions, called distributions. The bell shape of the normal distribution has a very clear meaning: extreme values are rare and there is always a well-defined mean value sitting at the peak between these extremes. In the case of a normal distribution, a 50/50 rule is applicable: 50% of values amount to 50% occurrences.

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Felipe Penha

Felipe Penha

@felipepenha

Data Scientist, PhD in Physics

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Felipe Penha@felipepenha
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