RCQ-1-2 Q5) The Pareto Chart is based on the Pareto Principle first developed in 1906 by Italian economist, Vilfredo Pareto: 20% of the effects are from 80% of the causes. 20% of the effects form a linear relationship with 80% of the causes. 80% of the effects are from 20% of the causes. 80% of the effects form a linear relationship with 20% of the causes