What is the mean absolute deviation Meaning and Definition

Pronunciation

/ˈmiːn ˌæbsəˈluːt dɪˈvɪeɪʃən/ 🔊

Part of Speech

Noun

Definition

A statistical measure of the average distance between each data point in a set and the mean value of the set. It is a measure of the spread or dispersion of the data.

Examples

• The teacher calculated the mean absolute deviation to determine the spread of the students’ grades.
• The mean absolute deviation is used in finance to measure the volatility of stock prices.

Synonyms

• Absolute deviation
• Mean absolute error

Antonyms

• Standard deviation
• Variance

Additional Information

The mean absolute deviation is a useful statistical measure because it is easy to calculate and understand. It is also a robust measure, meaning that it is not greatly affected by outliers or extreme values in the data. However, it does have some limitations. For example, it does not take into account the direction of the deviations from the mean, and it can be sensitive to the choice of the mean value.

In many fields, the mean absolute deviation is used as a measure of risk or uncertainty. For example, in finance, it is used to measure the volatility of stock prices or the risk of an investment. In engineering, it is used to measure the uncertainty of a system or process.

The mean absolute deviation is also used in many other fields, including economics, sociology, and medicine. It is a versatile measure that can be used to analyze and understand a wide range of data.

Etymology

The term “mean absolute deviation” is derived from the words “mean”, “absolute”, and “deviation”. The concept of the mean absolute deviation has been used in statistics for many years, but the term itself is relatively recent. It was first used in the mid-20th century, as a way to describe the measure of spread or dispersion that is now commonly used in statistics.

Usage Notes

The mean absolute deviation is often used in formal or technical contexts, such as in statistics or finance. It can also be used in more general contexts, such as in business or education. However, it is generally not used in informal or casual conversations.

Cultural References

The mean absolute deviation has been referenced in various forms of media, including books, articles, and websites. It has also been used in various fields, such as finance, engineering, and economics.

Idiomatic Expressions or Phrases

• “Mean absolute deviation from the norm”
• “Variation from the mean absolute deviation”

Related Words or Phrases

• Standard deviation
• Variance
• Range

Collocations

• “Calculate the mean absolute deviation”
• “Mean absolute deviation of a dataset”

Frequency of Use

The frequency of use of the term “mean absolute deviation” has increased in recent years, particularly in fields such as finance and engineering. However, it is still not as widely used as some other statistical measures, such as the standard deviation.