Question

If you have a data set with an average of $43 and a M.A.D. of 10.4. What does that M.A.D. mean?

a
The M.A.D. of 10.4 means that each data item is a distance of 10.4 from the average of $43
b
The M.A.D. of 10.4 is the average cost of the data
c
The M.A.D. of 10.4 is the average of how far the prices vary from the average cost of $43

Answer 1

Answer:

c. The M.A.D. of 10.4 is the average of how far the prices vary from the average cost of $43.

Step-by-step explanation:

M.A.D. stands for Mean Absolute Deviation, which is a measure of how much the individual data points deviate from the average (mean) of the data set. It is calculated by taking the absolute difference between each data point and the mean, then averaging those absolute differences.

In this case, the M.A.D. of 10.4 means that on average, each data point in the set differs from the mean by about $10.4. So, the M.A.D. gives an idea of how spread out the data is from the mean, and can be used as a measure of variability or dispersion in the data set.