Question

Why do we use averages, what are it's limitations explain on example of your own.

Answer 1

We use averages because different country have different population. So simply adding the total income will not be suitable to know the development status of that particular country.

Now coming to the limitation the problem is that it will hide disparties.
It will not show how many rich and poor people are there in That country.


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Answer 2

Here is your answer buddy:-

For comparing two different countries, total income is not such useful measure since different countries have different population, total income does not tell us about average income of a person. That's why we use averages.

LIMITATION:-
i) Averages are useful for comparison, they also hide disparities.
ii) It does not tell us how this income is distributed among people.

Ex:- A country with high population has more income as compared to country with lower income but the average income of person can be different. Hence average is used.

Hope it helps.
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