Why do we use averages? Are they any limitations to their use ? Illustrate with your own example related to development ?
Answers
Answer:
Averages are used for comparison
Some of the limitations are
1. It creates disparities
,2. It doesn't tells us that how the income is distributed
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We use average because they are useful for comparing different quantities of the same category.
e.g: to compute the per capita income of a country , averages have to be used because there are differences in the incomes of diverse people.
LIMITATION : Even though they are useful for comparison , they may also hide disparities .
e.g: The infant morality rate of a country does not differentiate between the male and female infants born in the country. Such an average tells us nothing about wether the number of children dying before the age of one are mostly boys or girls.
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