Question

Why do we use average ? Are there any limitations of their use? Illustrate with example related to development.

Answer 1

For comparisons across various classes, we utilize averages.

Explanation:

Use of average:-

• Those who don't give us the real picture with benefits to be derived dispersion.
• Averages do not provide us with information about the nonmaterial goods and services. While totals are advantageous when compared, disparities also are concealed.

Limitations of Using Averages:-

• Averages only calculate the actual accessibility and yet conceal the system discrepancies. That's the main limitation of averages usage.
• Average revenue does not indicate how the profit is dispersed even amongst the population. Some might be very wealthy but the common people might be poor.
• Individuals don't give us a realistic image of how power is distributed.

Example:-

To evaluate a country's per capita income, comparisons must be used since the salaries of different populations vary. There are many drawbacks to using averages, nevertheless. Here so the earned amount varies from one person to another. Comparison averages are useful, those who hide differences, too.

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Answer 2

Answer:

We use averages as they are useful for comparing differing quantities of the same category. This does not show the distribution of things between people. There are limitations of calculating averages because this does not give any information about the distribution of a thing between people

Explanation: