Question

why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to the development​

Answer 1

Answer:

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.

Answer 2

Answer:

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