Question

why do we use averages are there any limitations to their use​

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. Even though they are useful for comparison, they may also hide disparities. For example, the infant mortality rate of a country does not differentiate between the male and female infants born in that country. Such an average tells us nothing about whether the number of children dying before the age of one are mostly boys or girls.

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Answer 2

Answer:

•Averages are used to compare different countries, states, or regions. Since countries have different populations, comparing total income will not tell us what an average person is likely to earn.

• Averages have many 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.

Limitations of Average Income

While averages are useful for

comparison, they also hide disparities.

•For example let us consider two countries- A and B. For the sake of simplicity, we have assumed that they have only five citizens each. Based on the data given in the table, let us calculate the average income for both the countries.

Explanation:

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