How To Calculate Median Absolute Deviation In Excel

Introduction

Calculating the median absolute deviation (MAD) is a robust measure of statistical variability, often preferred over standard deviation due to its resistance to outliers. Excel users can perform this calculation, but it requires multiple steps, including median and absolute functions.

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Calculate Median Absolute Deviation in Excel

To measure the spread of values in a dataset, the Median Absolute Deviation (MAD) is a robust statistical tool. Unlike Mean Absolute Deviation calculated by the AVEDEV() function, MAD is less influenced by outliers. In Excel, there is no direct function for MAD, but it can be computed using a formula based on medians.

Steps to Compute MAD

First, find the median of the dataset, denoted as x_m. Second, calculate the absolute differences between each dataset value (x_i) and the median (x_m). Finally, compute the median of these absolute differences. The resulting value is the MAD of the dataset.

Excel Formula for MAD

To calculate MAD in Excel, use the following array formula: =MEDIAN(ABS(range-MEDIAN(range))), where "range" is the cell range of your dataset. This formula must be entered as an array formula by pressing Ctrl+Shift+Enter.

Example of MAD Calculation in Excel

Assume your data is in cells A1 to A10. To find the MAD, enter =MEDIAN(ABS(A1:A10-MEDIAN(A1:A10))) into a new cell. Confirm this formula as an array formula with Ctrl+Shift+Enter. Excel will enclose the formula in curly braces and return the MAD for your dataset.

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Conclusion

Calculating median absolute deviation in Excel requires multiple steps and complex formulas. Manual calculations increase the risk of errors.

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