Why do we use averages to calculate the per-employee compensation of a firm?

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Lack of data

Different Population

Averages are mirror image of reality

Cultural differences

answer is B.

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Detailed Solution

To compare different quantities in the same category, we use averages. For instance, because there are disparities in the wages of multiple employees, averages must be used to calculate the per-employee compensation of a firm. However, the application of averages has its limits.
They are useful for comparison, but they may also mask differences.
Let's examine the example provided here. The infant mortality rate in that nation does not distinguish between male and female newborns. Here, the average figure will not indicate whether the majority of the children that pass away before the given age are boys or girls.

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