Question

why do we use average's ? Are ther any limitations to their use ? Illustrate with your own example related to development. (answer in points)​

Answer 1

Answer:

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. For example, the per capita income does not show the distribution of income

Explanation:

Answer 2

Why do we use averages? Are there any limitations to their use? Illustrate with

your example relating to development.

Ans. Normally, average per capita income is used to measure economic development

of a country. No doubt, average income is a simple measure for measuring economic

development. But it has some limitations.

Limitations:-

1. Per capita income is a narrow concept of development.

2. It divides the countries into rich and poor.

3. It considers only income and not other aspects such as health and life

expectancy etc.

4. It neglects inequalities of income, richness as well as extreme poverty.

5. it neglects the extreme value