The flaw of averages refers to

1 the average of a measure (e.g., profit) only provides a small indication of system behavior.

2 setting random input values to their average or best guess values can lead to poor decisions under uncertainty.

3 an error in simulation results that stems from the fact that simulated random numbers are not truly random.

4 the fact that the calculation of confidence intervals must account for the possibility of error in the estimate of the mean.

5 errors and/or poor decisions that arise when decisions for complex decision problems under uncertainty are made by a large committee.