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Pareto Analysis: Top 20% Customers Revenue Share

advanced~15 min40 pts
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Problem

Apply the Pareto principle (80/20 rule) to customer revenue. Find the top 20% of customers and show what percentage of total revenue they account for using cumulative sums.

Schema: Customer

ColumnType
CustomerIdINTEGER (Primary Key)
FirstNameTEXT
LastNameTEXT
CompanyTEXT
AddressTEXT
CityTEXT
StateTEXT
CountryTEXT
PostalCodeTEXT
PhoneTEXT
FaxTEXT
EmailTEXT
SupportRepIdINTEGER (Foreign Key → Employee.EmployeeId)

Schema: Invoice

ColumnType
InvoiceIdINTEGER (Primary Key)
CustomerIdINTEGER (Foreign Key → Customer.CustomerId)
InvoiceDateTIMESTAMP
BillingAddressTEXT
BillingCityTEXT
BillingStateTEXT
BillingCountryTEXT
BillingPostalCodeTEXT
TotalNUMERIC(10,2)

Requirements:

  • Rank all customers by total spending descending
  • Use ROW_NUMBER() and COUNT(*) OVER () to find the top 20%
  • Calculate CumulativeRevenue and CumulativePercent using window SUM
  • Only show customers in the top 20%
  • Order by SpendRank
CTEWindow FunctionsROW_NUMBERRunning TotalaggregationAmazon
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