Economy, asked by dinesh030, 11 months ago

why do you use averages? Are there any limitation of 2​

Answers

Answered by raj22052003
0

.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.

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

Answered by vansh468823
1

We use averages because they are helpful to calculate various things such as per capita income, GDP etc.

Yes, they do have limitations....

The limitations are that they hide desparities because when we calculate averages we get figure which may not show us the real picture. Ex- In a class of 3 students they score 90, 30 and 60 respectively out of 100. The average will be 60 which hides the fact that one student has failed.

HOPE THAT IT HELPS..

PLS MARK BRAINLIEST

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