Why do we use averages ? …
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Posted by Y Shivani 6 years, 9 months ago
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Yogita Ingle 6 years, 9 months ago
Averages are used to compare different countries, states, or regions. Since countries have different populations, comparing total income will not tell us what an average person is likely to earn.
Averages have many limitations.
Limitations of Average Income
While averages are useful for comparison, they also hide disparities.
For example let us consider two countries- A and B. For the sake of simplicity, we have assumed that they have only five citizens each. Based on the data given in the table, let us calculate the average income for both the countries.
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