Calculating the Mean Absolute Deviation Using Microsoft Excel

In this Microsoft Excel tutorial we will review how to calculate the Mean Absolute Deviation. The video displays the title page. Edward Volchok, PhD Page 1 of 24 MAD_Transcript.docx

The Mean Absolute Deviation is a measure of dispersion. The video displays the words: Measure of Dispersion. Edward Volchok, PhD Page 2 of 24 MAD_Transcript.docx

It is the arithmetic mean of the absolute value of the dispersion of each random variable from the arithmetic mean. The video displays the words, the arithmetic mean of the absolute value of the dispersion of each random variable from the arithmetic mean. Edward Volchok, PhD Page 3 of 24 MAD_Transcript.docx

The absolute value of a number is its numerical value without regard to its positive or negative sign. The video displays the words, the absolute value of a number is its numerical value without regard to its sign. Edward Volchok, PhD Page 4 of 24 MAD_Transcript.docx

The absolute value of -10 is 10 and the absolute value of +10 is 10. The video displays equations of the absolute value of -10 and 10. Edward Volchok, PhD Page 5 of 24 MAD_Transcript.docx

The formula for the Mean Absolute Deviation is the sum of the absolute value of X minus X-Bar, or the sample mean, over n, the number of variables in the data. The video displays the formula for the Mean Absolute Value. Edward Volchok, PhD Page 6 of 24 MAD_Transcript.docx

In this tutorial we will examine two Excel functions. The first is the ABS function. The video displays the words ABS function. Edward Volchok, PhD Page 7 of 24 MAD_Transcript.docx

The second function is the AVEDEV or Mean Absolute Deviation function. The AVEDEV function has the advantage of being able to calculate the Mean Absolute Deviation in one step. The video displays the words AVEDEV function. Edward Volchok, PhD Page 8 of 24 MAD_Transcript.docx

The ABS Function returns the absolute value of a number, which is the value of a number without regard to its positive or negative sign. The video displays the words Returns the absolute value of a number. Edward Volchok, PhD Page 9 of 24 MAD_Transcript.docx

The syntax of this function is equal sign, ABS, open parenthesis, number, close parenthesis, and hit the Enter Key. The video displays the words, Syntax: =ABS(Number). Edward Volchok, PhD Page 10 of 24 MAD_Transcript.docx

We can calculate the Mean Absolute Deviation in Excel in five steps. The first step is to find the mean using the AVERAGE Function. The video displays the words, Step 1: Find the Mean using the AVERAGE Function. Edward Volchok, PhD Page 11 of 24 MAD_Transcript.docx

In this Excel file with have data on per capita Beef Consumption in 6 countries. Our first step is to find the Arithmetic Mean using the AVERAGE Function. Place the cursor in Cell B9 and type equal sign, AVERAGE, drag the cursor through Cells B3 through B8, close parenthesis, and hit the Enter Key. Excel returns 23.67. The video displays the AVERAGE function being used in an Excel spreadsheet. Edward Volchok, PhD Page 12 of 24 MAD_Transcript.docx

Step 2: Count the number of variables using the COUNT function. The video displays the words, Step 2: Count the number of variables using the COUNT Function. Edward Volchok, PhD Page 13 of 24 MAD_Transcript.docx

To count the number of variables place the cursor in Cell B10 and type equal sign, COUNT, open parenthesis, drag the cursor through Cells B3 through B8, close parenthesis, and hit the Enter Key. Excel returns the count of 6. The video displays the COUNT function being used in an Excel spreadsheet. Edward Volchok, PhD Page 14 of 24 MAD_Transcript.docx

Step 3: Find the Absolute Value of the Deviation of each variable from the Mean using the ABS function. The video displays the words, Step 3: Find the Absolute Value of the Deviation from the Mean of each variable using the ABS function. Edward Volchok, PhD Page 15 of 24 MAD_Transcript.docx

To find the Absolute Value of the deviation from the Mean for each of the Random Variables, place the cursor in Cell C3 and type equal sign, ABS, open parenthesis, B3 minus $B$9, close parenthesis, and hit the Enter Key. Copy this formula and paste it into Cells C4 through C8. The video displays the ABS function being used in an Excel spreadsheet. Edward Volchok, PhD Page 16 of 24 MAD_Transcript.docx

Step 4: Sum the Absolute Value of the Deviation of each variable from the Mean using the SUM function. The video displays the words, Step 4: Sum the Absolute Values of the Deviation of each variable from the Mean using the SUM function. Edward Volchok, PhD Page 17 of 24 MAD_Transcript.docx

The next step is to sum the absolute values of the deviations from the mean. Place the cursor in Cell C9 and type equal sign, SUM, open parenthesis, drag the cursor through cells C3 to C8, close parenthesis, and hit the Enter Key. Excel returns 92.00. The video displays the SUM function being used to add the absolute values of the deviation of each value from the mean. Edward Volchok, PhD Page 18 of 24 MAD_Transcript.docx

Step 5: Divide the sum of the Absolute Values of the Deviations from the Mean by the number of observations, or n. The video displays the words, Step 5: Divide the sum of each Absolute Values of the Deviation of each variable from the Mean by the number of observations, or n. Edward Volchok, PhD Page 19 of 24 MAD_Transcript.docx

The final step is to divide the sum the absolute values of the deviation from the mean by the number of observations. Place the cursor in Cell C11 and type equal sign, click on Cell C9, enter the divide symbol, click on Cell D10, and hit the Enter Key. Excel returns the Mean Absolute Deviation, which is 15.33. The video displays the final step in the calculation of the Mean Absolute Deviation. Edward Volchok, PhD Page 20 of 24 MAD_Transcript.docx

The AVEDEV function measures variability in data by returning the Mean Absolute Deviation. Its chief advantage is that it calculates the Mean Absolute Deviation in one step. The video displays the words, Measures variability in data by returning the Mean Absolute Deviation. Edward Volchok, PhD Page 21 of 24 MAD_Transcript.docx

The syntax of this function is equal sign, AVEDEV, open parenthesis, select the range of cells, close parenthesis, and then hit the Enter Key. The video displays the words, Syntax: =AVEDEV(number1,number2, ). Edward Volchok, PhD Page 22 of 24 MAD_Transcript.docx

Place the cursor in Cell B11. Type equal sign, AVEDEV, open parenthesis, drag the cursor through Cells B3 through B8, close parenthesis, and hit the Enter Key. Excel returns the Mean Absolute Deviation, which is 15.33 kilograms of beef per capita. The video displays the use of the AVEDEV function in Microsoft Excel. Edward Volchok, PhD Page 23 of 24 MAD_Transcript.docx

This has been our tutorial on how to use Microsoft Excel to calculate the Mean Absolute Deviation. The video displays the The End. * * * Edward Volchok, PhD Page 24 of 24 MAD_Transcript.docx