Question

Whydo we use averages? Are there any limitations to their use.

Answer 1

Dear Student,

Usually, ‘average income’ is used to compare development of different countries.
2) Total income cannot be directly compared as population of each country differs. Hence ‘average’ is used to compute how much income each person earns.
3) At the same time, ‘average’ can be a misleading indicator, so as a measure of equality.
4) i.e. how equally incomes are distributed among people is often unknown.
5) This is as a result of high inequality of incomes lasting in the society.

Regards