Mean absolute deviation, Applied Statistics

Mean Absolute Deviation

To avoid the problem of positive and negative deviations canceling out each other, we can use the Mean Absolute Deviation which is given by

2296_mean absolute deviation.png Here 2404_mean absolute deviation1.png = 1828_mean absolute deviation2.png   if  538_mean absolute deviation3.png and  2404_mean absolute deviation1.png = 1133_mean absolute deviation4.png

Although Mean Absolute Deviation avoids the problem of positive and negative deviations canceling out, it is not popular in practice. This is because it neglects the difference between positive and negative deviations although the positive and negative signs are considered in calculating the mean which in turn is used to calculate the deviations. Further, it is difficult to deal with the quantity   2404_mean absolute deviation1.pngalgebraically.

Posted Date: 9/14/2012 2:56:11 AM | Location : United States







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