Pareto analysis is a statistical tool used to identify the most important factors in a given situation. It is based on the Pareto principle, which states that a small number of factors (usually 20% or less) tend to have a disproportionate impact on a given outcome. In Pareto analysis, a list of factors is ranked in order of importance, with the most important factors listed first. This allows organizations to prioritize their efforts and focus on the factors that will have the greatest impact. Pareto analysis can be used in a variety of contexts, including quality improvement, project management, and business analysis. It is a simple and effective way to identify the key drivers of a given outcome and to allocate resources accordingly.