Question

6. Why do we use averages? Are there any limitations to their use? Illustrate with
your own examples related to development.​

Answer 1

Explanation:

Illustrate with your own examples related to development. Answer: We use averages as they are useful for comparing differing quantities of the same category. ... There are limitations of calculating averages because this does not give any information about the distribution of a thing between people.

Answer 2

We use averages because they are useful for comparing differing quantities of the same category.

For example, to compute the per capita income of a country, averages have to be used because there are differences in the incomes of diverse people. However, there are limitations to the use of averages. This does not show the distribution of thing between people. For an example, suppose in a country, the annual income of a rickshaw puller is Rs 8,000 while an MNC employee earns an annual package of Rs 12,00,000. The average income of this country, therefore, will be Rs 6,05,000. Here actual income or status remains unknown. One can clearly consider this as a rich country thereby ignoring the income disparity between two individuals. Averages are useful for comparison, they also hide disparities.