Some authorities recommend that Pareto analysis should report the cost of problems rather than the frequency of problems to identify the issues that should be given priority for improvement. What is the reason behind this recommendation?
1) Cost of problems provides a better understanding of the impact on the overall performance of the system
2) Frequency of problems is not a reliable indicator of the severity of the issues
3) Cost of problems helps in allocating resources effectively for improvement
4) All of the above
