An insurance company monitors customer complaints. There are several possible problem categories including wrong bill sent, charges too high, failure to add new coverage, deletion of existing coverage and incorrect address. Determine the percentage that each problem contributes to customer complaints.

Pareto Diagram

Explanation:

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The Pareto chart, named after Vilfredo Pareto, is a type of chart that consists of columns and lines in which the independent values are represented by lower-order columns and values. The cumulative sum is represented by a straight line.

The vertical vertical axis is used to measure the frequency of occurrence, but it can also be replaced to measure costs or a different unit of calculation depending on the purpose. The vertical vertical axis is used to measure the cumulative percentage of the total number of occurrences, the total cost or the sum of a unit of measurement depending on the purpose. Because values are arranged in descending order, the cumulative function will be a concave function

The purpose of the Pareto chart is to find out in a group of causes (often there are many), which are the most important causes.

So Pareto Diagram is the best determiner that each problem contributes to customer complaints.

Hope it will find you well.

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