A Pareto Chart helps identify the frequency of a factor (count) and its cumulative impact. The chart is a combination of a bar and a line chart. The bar represents the count of the components being analyzed and the line represents the cumulative impact of the bar component with each progression. 

 

You can use a Pareto Chart when you have a huge data set and want to analyze the major components of your data. A few places where you can use a Pareto Chart to analyze are:

Now, let us see how to create a Pareto Chart, to find out the best selling products of a company, with the help of a video.