Pareto Principle
QUOTE
Johann Wolfgang von Goethe once said…
“Knowledge is not enough; we must apply. Willing is not enough; we must do.”
CONCEPT
Pareto Principle
Also known as the 80/20 Principle, this concept states that roughly 80% of effects come from 20% of causes.
The Pareto Principle can be applied to many areas of life, including business, finance, and time management. By focusing on the 20% of activities that generate 80% of results, you can maximize your impact and achieve your goals more efficiently.
STORY
The Power of Probabilities
Have you ever heard of Bayes' Theorem? Named after 18th century statistician Thomas Bayes, Bayes' Theorem is a mathematical formula that is used to determine the probability of an event occurring based on prior knowledge.
In the 19th century, Florence Nightingale, the founder of modern nursing, used Bayes' Theorem to make sense of the overwhelming data on soldiers' health during the Crimean War.
She noticed that the majority of soldiers who were dying were not from combat wounds, but from preventable diseases like pneumonia and typhoid fever.
With this knowledge, Nightingale was able to implement simple, yet effective measures like improved sanitation and ventilation that significantly reduced the death rate.
Using Bayes' Theorem, we can make informed decisions, even in complex and uncertain situations.