what are averages what are the limitations to their use
Answers
ANSWER:Since countries have different populations, comparing total income does not tell us what an average person is likely to earn.Hence,we compare the average income which is the total income of the country divided by it's total population.We use averages because they are useful for comparing differening quantites of the same category.For example,to compute the per capita income of the country,averages have to be used because there are differences in the income of diverse people.
LIMITATIONS OF USE OF AVERAGES:
(1)Although 'averages' are useful for comaparison, they hide disparities.For example, there may be two contries A and B, where the monthly income will bw the same.In country A,most of the people have higher incomes,but on country B, a fw people are extremly rich with high income while most of the people are extremly poor with very less income.So, everybody will like to live in country 'A' because it has more equitable distribution while in country 'B' there much diffrence between the income of rice and the poor.
(2)Even though aveages are useful for comparison, they amy also hide disparities.For example, the infant mortality rate of the country does not diffrentiate between the male and the female infants born in the country.Such an average tells us nothing about whether the number of children dying before the age of one are girls or boys.
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