Beware of the flaw of averages while investing4 min read 05 Mar 2018, 06:08 PM IST
While averages are good in many areas of life, they may give an inappropriate picture in certain other areas
A man went out for a picnic with his family near a riverbank. There were some beautiful sites on the other side of the river. However, there wasn’t a bridge or any other means available, and one had no choice but to go through the water to reach the other side. The man simply did some calculations and announced that they could all actually walk across the river since the average height of the family members was 4 ft while the average depth of the river was only around 3 ft. Unfortunately, his young son started drowning by the time they reached the middle of the river.
Select your Category