The number of cars in 5 different parking lots are given as data points as follows:
We are to determine the Mean Absolute Deviation ( MAD ). It is a statistical indicator which is used to quantify the variability of data points. We will apply the procedure of determining the ( MAD ) for the given set of data points.
Step 1: Determine the Mean of the data set
We will first determine the mean value of the data points given to us i.e the mean number of cars in a parking lot. The mean is determined by the following formula:
Where,
We will use the above formulation to determine the mean value of the data set:
Step 2: Determine the absolute deviation
The term absolute deviation is the difference of each point in the data set from the central tendency ( mean of the data ). We determined the mean in Step 1 for this purpose.
To determine the absolute deviation we will subtract each data point from the mean value calculated above.
We will apply the above formulation for each data point as follows:
Step 3: Determine the mean of absolute deviation
The final step is determine the mean of absolute deviation of each data point calculated in step 2. Using the same formulation in Step 1 to determine mean we will determine the " Mean Absolute Deviation ( MAD ) " as follows:
Answer: