1. We use averages for comparison.
2. Averages are better indicators than total.
3. There are limitations to their use.
4. They also hide disparities.
5. They do not tell us how the total is distributed among people.
6. They do not necessarily convey more equitable distribution.
7. Example:
| Name of the country |
Monthly Incomes of citizens in 2013(In Rupees) |
| Person A |
Person B |
Person C |
Person D |
Average |
| Country X |
24,500 |
26,000 |
25,500 |
24,000 |
25,000 |
| Country Y |
90,000 |
3,800 |
3,200 |
3,000 |
25,000 |
8. Both the countries have the same average income of ₹ 25,000
9. Country X-has more equitably distributed income.
10. Country Y has one rich and more poor persons.
