Economy, asked by angelkhushi72, 2 months ago

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

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Answers

Answered by sourabhdheer
2
Hope it helps you , but we use averages everywhere to conclude a decision.
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Answered by Anonymous
4

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.

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 the 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 is 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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