Canadian Health Information Management Association Practice Exam

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A Pareto chart is used to demonstrate what aspect of a problem?

a. a correlation between two variables.
b. graphically the steps in a process.
c. the causes of a problem and its frequency.
d. upper and lower control limits.

The correct answer is: c. the causes of a problem and its frequency.

A Pareto chart is a specific type of bar graph that represents the frequency or impact of problems in a process, where the problems are arranged in descending order. This visual tool is based on the Pareto principle, which suggests that a small number of causes often lead to a large portion of the issues, typically in a ratio of 80/20. In this context, the correct choice highlights that the chart effectively communicates which issues are most significant, allowing organizations to focus on the primary causes of problems. By clearly illustrating the frequency of each cause, stakeholders can prioritize efforts to address those that will yield the most substantial improvements. Other options, while they reference important concepts in data analysis and process management, do not accurately describe the specific purpose of a Pareto chart. For instance, illustrating a correlation between variables pertains more to scatter plots or correlational studies, while showing steps in a process aligns with flowcharts or process maps. Lastly, establishing upper and lower control limits is typically a function of control charts used in quality control methods, rather than a feature of Pareto charts.