Certified Professional Category Analyst (CPCA) Practice Questions 2025 – All-In-One Guide to Exam Success

Question: 1 / 400

Which of the following best describes how to correctly read a Pareto chart?

SKU's are listed in ascending order (left to right) based on their individual contribution to sales

SKU's are listed in descending order (left to right) based on their individual contribution to sales

The rationale behind the correct answer lies in the fundamental purpose and structure of a Pareto chart. A Pareto chart traditionally organizes data in a manner that highlights the most significant factors contributing to a particular outcome, following the Pareto principle, often known as the 80/20 rule. This principle posits that a small number of causes generally lead to a large percentage of the effect.

In a Pareto chart, the bars represent individual categories, such as SKUs (Stock Keeping Units), and are arranged in descending order from left to right. This arrangement allows viewers to easily identify which items contribute the most to the overall impact, such as sales or defects. By having the highest contributors on the left, the chart visually emphasizes the primary areas that warrant attention for improvement or action.

The other options do not align with the established structure of a Pareto chart. The first option suggests ascending order, which would obscure the visual impact of the most significant contributors. The third option misinterprets the purpose of the cumulative curve, which illustrates the cumulative contribution of those categories, rather than serving as a formula for calculating potential. The fourth choice inaccurately describes the structure of a Pareto chart by suggesting a ranking based on growth, which is not a standard characteristic

Get further explanation with Examzify DeepDiveBeta

Divide the cumulative curve (top of chart) by the bar value (below) to calculate the item's incrementally potential

The product's ranking in year-over-year growth is plotted at the top as a curved line

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