Question

why do we use averages are there any limitation to their uses illustrate with your own example related to development???

Answer 1

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 distribution of thing between people. For an example, if a country has very high per capita income then we can't say that citizen living in that country are very rich because we are not knowing about the distribution of wealth in that country. Some people might be richer while other people are very poorer in that country.




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Answer 2

we use averages for comparing the income of different countries. this comparison would be between 2 peoples and Two States. average income is the total income of the country divided by the total population. it is also called per capita.
this does not take into account of education and health. so it cannot be used for the purpose of overall development. example in the view of economic development the average income of the country increases but if the difference between rich and poor increases it cannot be called development