Posted by Rena on Friday, December 10, 2010 at 8:16am.
Your reasoning is valid only if the number of employees of males and females is the same.
I will explain with a simple example:
group A : 100,200,200,300
average = sum/4 = 200
group B = 50, 100,200,250
avg = sum/4 = 150
true average = total of all 8/8 = 175
avg by taking the average of the two averages
= (200+150)/2 = 175
Now I will add another 200 to group A
group A: 100,200,200,200,300
avg = sum/5 = 200
true average of all 9 is now
= total of all 9 numbers/9 = 1600/9 = 177.8
while with "your method" the anwer would still be 175
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