Question

One aspect of a study involved describing the type of tenant typically found at a shopping mall. Data were collected for 120 shopping malls, which housed 1,848 stores. Tenants were categorized based on amount of floor space: anchor tenants (more than 30,000 square feet, denoted by A), major space users (between 10,000 and 30,000 sq ft, denoted by MS), large standard tenants (between 4,000 and 10,000 sq ft, denoted by LS), small standard tenants (between 1,500 and 4,000 sq ft, denoted by SS), and small tenants (less than 1,500 sq ft, denoted by S). The number of stores in each tenant category was reported as 20, 230, 806, 07, and 725, respectively. Use this information to construct a Pareto diagram for the distribution of tenant groups at shopping malls. Interpret the graph.

Interpret the pareto diagram. Pls show your working, thanks!

Answer 1

I have used excel. following the steps

• Input the data in the sheet and then sort it in descending order.

Amt. of Floor Space(sq. ft.)	No. of Tenants
4000 - 30000	806
<1500	725
10000 - 30000	230
1500 - 30000	67
<30000	20
Sum	1848

• Get percentages and its cumulative

Cumulative for 1st remains same and for 2nd = previous + 39.2%

Amt. of Floor Space(sq. ft.)	No. of Tenants	Cumulative	%
4000 - 30000	806	43.6%	43.6%
<1500	725	82.8%	39.2%
10000 - 30000	230	95.3%	12.4%
1500 - 30000	67	98.9%	3.6%
<30000	20	100%	1.1%

• Select the data till cumulative and insert ' Column- 2-d Clustered'
• Select on any bar and right click and select 'Change Series Chart Type '
• In the dilogue box select 'Combo'
• Make the change 'Amt. of floor space - Clustered Column'

cumulative - line (check for secondary axis as well)

For Excel 2010 or 2007, it will be a two-step process. First, change the chart type to a line chart and then right click on the line chart and select Format Data Series and select Secondary Axis in Series Option

900 100.0% 90.0% 800 80.0% 700 70.0% 600 60.0% 500 50.0% No. of Tenants 40.0%-Cumulative 300 30.0% 200 20.0% 100 10.0% 0.0% 4000<1500 10000150030000 10000 30000 4000

Interpretation: This diagram shows that around 80% of tenants have a space of 4000-10000 and <1500 sq. ft. A very few people have >30000sq ft. space.

Pareto diagram is used for anaysing the cases(causes) with highest frequency(problems) and which takes up about 80% of the total number of problems.