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The well-known 80/20 Pareto principle and its refinement into ''A'', ''B'', and ''C'' categories give rise to a managerial methodology consisting of three steps: classification; differentiation; and resource allocation. This is an easy-to-implement and extremely effective methodology. It starts with the creation of ''Pareto diagrams'', i.e. bar charts of attributes and their relative frequency, presented in descending order. Typically, Pareto diagrams are useful in that they provide managers with a summary of practical information, revealing critical attributes. However, sometimes a Pareto diagram is less informative than it might be, because the relative frequency is almost uniform. The objective of this article is to provide an analytical tool (an index) that employs the abovementioned methodology to measure the closeness of empirical Pareto diagrams to an ''ideal'' Pareto diagram. The index developed is based upon entropy.

Spreadsheet programs and microcomputers have revolutionized information processing in organizations. Users have adopted spreadsheets to solve problems and circumvent the long delays encountered in dealing with the traditional information services department. A significant number of serious errors have been reported through the misuse of spreadsheet technology. This paper discusses several different contexts for the development of spreadsheet models and presents structured design techniques for these models. The recommended approach to spreadsheet analysis and design encourages the use of a block structure format for the worksheet and introduces Spreadsheet Flow Diagrams as a systems design tool. The objective of this design approach is to reduce the probability and severity of spreadsheet errors, improve auditability and promote greater longevity for spreadsheet models. Once this model has been constructed, the only input needed by the decision maker is to enter dollar amounts in the column labeled @lIn~rease.~ The alternative to a spreadsheet model is pencil, paper and calculator; each time a new salary increase is entered, the totals must be manually recomputed. One of the authors used to use a calculator for this process and developed the model in copied formulae, incorrect use of formats and column widths, accidentally overwritten formulae and misuse of built-in functions. Table 1 describes some of the problems found with spreadsheets. Desisn Obi ectivesTo minimize the probability and severity of the problems in Table 1, the designer of a spreadsheet should be concerned with the following issues: 1) A spreadsheet should produce reliable results; the output it generates should be correct and consistent. 2) A spreadsheet should be capable of being audited; the user should be able to retrace the steps followed to generate different outputs concerns about data integrity, input editing and error checking.Since the spreadsheet developer is often a user who is basically unfamiliar with the design principles above, ad hoc design is common. There tends to be little concern with formal analysis or documentation, Often the spreadsheet model is a one-time exercise or an infrequently used decision support system (DSS). Formal design methods slow progress on ttquicktt systems.A structured approach to spreadsheet design can help reduce the probability and severity of problems with spreadsheets. To be useful, a spreadsheet design approach must help achieve the objectives for these models described above, must achieve results quickly, and must be suited to the style of the end user. Table 2 describes the characteristics of spreadsheet applications and the implications of these characteristics for design.Because of the wide variety of use for spreadsheet models, it is very difficult to construct a design methodology that will be generally applicable. This paper proposes a structured approach to design the use of which is contingent on the type of model being developed. If the spreadsheet is to be used for a traditio...