Question

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

Answer 1

We use averages because they are used to compare different countries, states or regions.
Limitations -

(a) They don't give us the true picture regarding the distribution of income.

(b) Averages don't give us any information regarding the non-materialistic goods and services...

I hope it helps u...

Answer 2

Explanation:

We use averages as it is useful for comparing differing quantities of the same category. For example, in order to compute the per capita income of a country, averages are used because there are differences in the incomes of the people. Averages are useful for comparison however, there is a limitation to the use of averages that they hide disparities. For example, the infant mortality rate or IMR of a country does not represent the data of the male and female infants born in that country. This kind of average hides the gender of children dying before the age of one.