UPSC Prelims 2024 · CSAT (Paper 2) · Q32

Comprehension

Hard · Passage: validity of assumptions

Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

A district reports that its average household income has risen by a fifth over five years, and the figure is repeated as though it settled the question of how the district is doing. It settles very little. The same average is produced by every household gaining a fifth, and by a tenth of them doubling their income while the rest stand still, and the second district is not the first. An average is a single number standing in for a distribution, and standing in is not the same as showing. Where the gain sits is a separate question, and it has to be asked separately.

Based on the above passage, the following assumptions have been made:

1. A rise in the average income of a district shows that most households in it are better off.

2. An aggregate figure can conceal the distribution of outcomes that produced it.

Which of the assumptions given above is/are valid?