Certified Supply Chain Professional (CSCP) Practice Exam

What characteristic does a Pareto chart typically highlight?

1. The median of a data set

2. Differences between groups

3. Frequency of items based on their impact

4. Average performance metrics

The correct answer is: Frequency of items based on their impact

A Pareto chart is a specific type of bar chart that visually represents the frequency or impact of problems or defects in a process. This chart is based on the Pareto principle, also known as the 80/20 rule, which states that a small number of causes often lead to a large percentage of the effect. In the context of this question, the characteristic highlighted by a Pareto chart is the frequency of items based on their impact. The bars in the chart typically represent individual items or categories arranged in descending order of frequency or impact, allowing users to quickly identify which items contribute most significantly to issues or problems. This visualization assists in prioritizing which aspects need to be addressed first to achieve improvements in a process or product. Other possible choices do not align with the purpose of a Pareto chart. While the median of a data set, differences between groups, or average performance metrics may be of interest in data analysis, they are not the primary focus or utility of a Pareto chart, which distinctly emphasizes the items that have the most substantial impact or frequency.