Measure the average distance of each data point from the mean. Visualize absolute deviations via dynamic bar chart — perfect for understanding data spread.
The Mean Absolute Deviation (MAD) is a robust measure of statistical dispersion. It represents the average absolute distance between each data point and the dataset's mean. Unlike variance or standard deviation, MAD is less sensitive to outliers and is expressed in the original unit, making interpretation intuitive.
Portfolio daily returns: [0.5%, -0.2%, 0.8%, -0.4%, 0.3%]. MAD = 0.36% indicates low volatility. Used instead of standard deviation to reduce impact of extreme market moves.
Blood pressure readings (mmHg): 118, 122, 119, 121, 120 → μ=120, MAD=1.2. Low MAD suggests reliable measurement protocol.
Daily temperature errors (forecast vs actual): [2°C, -1°C, 3°C, -2°C, 1°C] → MAD = 1.8°C, a robust measure of forecast accuracy.
| Property | Mean Absolute Deviation (MAD) | Standard Deviation (σ) |
|---|---|---|
| Outlier sensitivity | Low (linear penalty) | High (quadratic) |
| Units | Same as data | Same as data |
| Interpretation | Average absolute distance | Root mean squared deviation |
| For normal distribution | MAD ≈ 0.7979 × σ (Geary, 1935) | |
For normally distributed data, the constant 0.7979 provides a quick conversion: σ ≈ MAD / 0.7979 or MAD ≈ 0.8·σ for approximation.
Our calculator focuses on mean absolute deviation, a foundational measure taught in introductory statistics and applied in exploratory data analysis.
Forecast error metrics: Mean Absolute Deviation of errors (also called MAE – Mean Absolute Error) is widely preferred over MSE because it penalizes all errors linearly. Example: Sales forecast errors [10, -15, 5, -8] → MAD = 9.5 units, directly interpretable as average mistake magnitude.