Which of the following statements best describes the relationship between a $\mathrm{Pareto}$ chart and a $\mathrm{histogram}$ chart?

• A. A $\mathrm{Pareto}$ chart and a $\mathrm{histogram}$ chart are the same type of chart and can be used interchangeably.
• B. A $\mathrm{Pareto}$ chart displays categorical data in descending order of frequency, while a $\mathrm{histogram}$ displays quantitative data in intervals.
• C. Both $\mathrm{Pareto}$ charts and $\mathrm{histograms}$ require the data to be sorted in ascending order.
• D. A $\mathrm{Pareto}$ chart is used only for continuous data, whereas a $\mathrm{histogram}$ is used for categorical data.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the purpose of each chart type. A Pareto chart is designed to display categorical data, showing the frequency of categories in descending order to highlight the most significant factors.
2. Step 2: Recognize that a histogram is used to display quantitative (numerical) data by grouping data into intervals or bins, showing the distribution of the data across these intervals.
3. Step 3: Note the sorting difference: Pareto charts require the categories to be sorted in descending order of frequency, while histograms display data in natural order of intervals (usually ascending order of the numerical bins).
4. Step 4: Compare the data types each chart handles: Pareto charts are for categorical data, histograms are for continuous or quantitative data.
5. Step 5: Conclude that the correct description is that a Pareto chart displays categorical data in descending order of frequency, while a histogram displays quantitative data in intervals.