Pareto's Law, also known as the 80/20 principle or the principle of inequality, is stated as the observation that when analyzing various phenomena, approximately 80% of the results usually come from 20% of the causes. This principle was first formulated by the Italian economist Vilfredo Pareto.
For example, in business, you may see that approximately 80% of a company's profits typically come from 20% of its customers, or 80% of its problems may be due to 20% of its causes. Applied to various areas of life and activity, the Pareto principle can be applied to identify key factors or improve efficiency by focusing on the most important elements.