why do we use averages?are there any limitations to their use?illustrate with your own examples related to development?
Answers
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1 ᴡᴇ ᴜsᴇ ᴀᴠᴇʀᴀɢᴇs ғᴏʀ ᴄᴏᴍᴘᴀʀɪsɪᴏɴ ʙᴇᴛᴡᴇᴇɴ ᴛʜᴇ ᴛᴡᴏ ᴄᴏᴜɴᴛʀɪᴇs, ᴘᴇʀsᴏɴs,ᴏʀ ᴛᴡᴏ ᴏʀ ᴍᴏʀᴇ ᴛʜɪɴɢs.
2 (ᴀ) ᴀᴠᴇʀᴀɢᴇ ᴅᴏ ɴᴏᴛ ᴛᴇʟʟ ᴜs ᴀʙᴏᴜᴛ ʟɪᴍᴇᴛᴀᴛɪᴏɴs ᴏʀ ᴅɪғғᴇʀᴇɴᴄᴇs ʙᴇᴛᴡᴇᴇɴ ᴛʜᴇ ᴄᴏᴜɴᴛʀɪᴇs, ᴘᴇʀsᴏɴs ᴏʀ ᴛʜɪɴɢs.
(ʙ)ʙʏ ᴀᴠᴇʀᴀɢᴇ ᴏɴʟʏ ᴏɴᴇ ᴀsᴘᴇᴄᴛ ɪɴᴄᴏᴍᴇ sɪᴢᴇ , ɪɴ ᴄᴀsᴇ ᴏғ ᴀ ᴄᴏᴜɴᴛʀʏᴄᴀɴ ʙᴇ ᴄᴏᴍᴘᴀʀᴇᴅ . ᴀʟʟ ᴀsᴘᴇᴄᴛs ᴀʀᴇ ɴᴏᴛ ᴄᴏᴍᴘᴀʀᴇᴅ.
(ᴄ) ɪᴛ ᴅᴏᴇs ɴᴏᴛ ɢɪᴠᴇ ᴜs ᴛʀᴜᴇ ɪᴍᴀɢᴇᴏғ ᴀ ᴄᴏᴜɴᴛʀʏ , ᴘᴇʀsᴏɴ ,ᴏʀ ᴛʜɪɴɢ.
3 ᴇɢ -ɪɴ ᴀ ᴄʟᴀss, sᴛᴜᴅᴇɴᴛs ᴅɪғғᴇʀ ɪɴ ʜᴇɪɢʜᴛ , ʜᴇᴀʟᴛʜ ᴀɴᴅ ᴛᴀʟᴇɴᴛ. ᴛʜᴇ ʜᴇᴀʟᴛʜɪᴇsᴛ ᴏɴᴇ ᴍᴀʏ ɴᴏᴛ ʙᴇ ᴛʜᴇ sᴛᴜᴅɪᴏᴜs ᴏɴᴇ.
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Averages are used for comparison because they present a large amount of data into a single value in a better way than total . Average expresses the central value but total indicates absolute value . In comparisons of countries , average income , indicates the income where a person is likely to earn but total income shows the income of the entire country .
Limitations of Average income :-
Average value has its limitations as it avoids / neglects inequality . So , the real situation of improvement is not reflected . While averages are useful for comparison for , they also hide disparities .
Illustration related to Development :-
Consider two countries A and B . It is assumed that there are five citizens each .
In Country - A , the income earned by its 5 citizens are 9500 , 10,500 , 9800 , 10,200 and 10000 whereas in Country - B , the income earned by its 5 citizens are 500 , 500 , 500 , 500 and 48,000 .
Average income of both the countries is 10,000 but it can be clearly seen that income is not equally divided in Country - B . Only one person is rich while rest of the 4 are poor .
Therefore , we can conclude from the above example that :-