Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.
Answers
Explanation:
To compare 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 . ... Here actual income differs between two individuals . Averages are useful for comparison , they also hide disparities.
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We use averages for comparisons across different classes.
Limiatations of Using Averages : Averages calculate only the mean availability but they hide the disparities in the process. This is the main limitation of using averages.
Let us consider two countries A and B, each having 4 citizens.
From the above example, we observe that in country B all citizens have the graduate level of education. There are fewer disparities in this country whereas in country A, half the citizens are illiterate or of primary education level whereas the other half are doctrates or post graduates. Therefore, even though average education level of both A and B is graduate level, yet there are great disparities between them.
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