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Construct a Pareto chart to represent the expenditure of a household with the following details: Food Rs. 800, Clothing Rs. 500, Education Rs. 400, Fuel Rs. 200, Misc. Rs. 100.
Business/Management
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Answer
To represent the data by a Pareto chart, we first need to calculate the percentage of expenditure for each item and then sort them in descending order. After that, we calculate the cumulative percentage.
Step-by-step solution
4 stepsCalculate the total expenditure.
Total expenditure Rs.
Calculate the percentage of expenditure for each item.
- Food:
- Clothing:
- Education:
- Fuel:
- Misc.:
Sort the items in descending order of expenditure and calculate the cumulative percentage.
Construct the Pareto chart.
A Pareto chart is a bar chart where the bars are arranged in descending order of frequency or cost, combined with a line graph that shows the cumulative percentage.
- The x-axis would list the items in the order: Food, Clothing, Education, Fuel, Misc.
- The left y-axis would represent the expenditure in Rupees, ranging from 0 to 800. Bars would be drawn for each item corresponding to its expenditure.
- The right y-axis would represent the cumulative percentage, ranging from 0% to 100%. A line graph would be plotted using the cumulative percentages for each item.
The table above provides all the necessary data to construct the Pareto chart.
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