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What is the Tyranny Of Averages?

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Tyranny of Averages is a term for overuse of averages in statistical analysis and decision making. In particular, it refers to a situation in which an average is relatively meaningless due to the shape of a data distribution.
A classic example is average income for a nation that is dramatically influenced by the top 2% richest people in that country. Such an average may indicate a "normal" family income that is well above what the majority of people in that country actually make. For example, the median income may differ from the average by 30 to 40 percent.
Overview: Tyranny Of Averages
Statistical Fallacy
A tendency for averages to convey little practical information about a data distribution.
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