Why do we use averages?What are its limitations?Explain with examples?
Answers
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:
Explanation:
The term average is used frequently in everyday life to express an amount that is typical for a group of people or things. For example, you may read in a newspaper that on average people watch 3 hours of television per day. ... Averages are useful because they: summarise a large amount of data into a single value; and.Limitations of per capita income are : (i) A rise in per capita income is due to rise in prices and not due to increase in physical output, it is not a reliable index of economic development. (ii) National income rises but its distribution makes the rich richer and the poor poorer