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Since the index represents weighted mean value of above-listed indicators, it is considered that it can forecast economic tendency of the state for half of year in advance. If over the last three months, the index value has negative dynamic, then the conclusion about slowdown of economic development is made. The index is published monthly, during the first week, at 10:00 a.m EST (New York). Respond to published data is minor, though the index is important. Such a respond can be explained by a later publication of the index – in a month after announcing of all its components, therefore, its approximate value is already known.
According to official sources, the Pareto Principle was named after the economist and sociologist Vilfredo Pareto, who was born in Paris in 1848, but was Italian by nationality. From 1906, he began to notice certain economic patterns. For example, he noted that 80% of the land in Italy belonged to 20% of the population. Then, he formulated the principle, noting that 20% of the pods in his garden contained 80% of the peas. These and other regularities led to the fact that Vilfredo Pareto developed the “80/20 Rule”, which in general form looked as follows: 80% of the effects come from 20% of the causes.
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