Answers to questions from the last post:

1. Since 95% of the benefits come from the most leveraged 1% of the points, the benefit per leverage point (and hence per leverage point minute, since on average the leverage points take similar amounts of time) for these most-leveraged ones is 95/1. Similarly, the benefits per minute for the least leveraged is 5/99. That means the ratio of most to least is 95/1 to 5/99, or 1881 to 1. Work on the leveraged stuff.
2. The analogous 80/20 rule would give us a ratio of 80/20 to 20/80 or 16 to 1.
3. Note that machine A is less productive overall, so we have to factor its defects by that. If x is the total number of widgets produced and y is the total number of defects, Machine A produces .7y/.4x defects per widget and B produces .3y/.6x. Since the x’s and y’s cancel out, the ratio is .7/.4 to .3/.6 or 3.5 to 1.

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