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Measures of Dispersion
Unit III · Lecture 17

BDS113 — Introduction to Statistics

Mean Absolute Deviation (MAD)

Understanding Spread · Formula & Calculation · Worked Examples · Properties & Comparisons


Unit III · Lecture 17 of 40 · B.Sc. Data Science, 1st Year, Semester II

Measures of Dispersion
Unit III · Lecture 17

The Journey — Lecture 17


📏
Why Dispersion?
Motivation · Limitations of averages alone · What "spread" means
📐
Mean Absolute Deviation — Definition & Formula
Concept · Formal definition · Step-by-step method
✏️
Worked Examples
Ungrouped data · Grouped / frequency data · Interactive calculator
⚖️
Properties, Comparisons & Quiz
Advantages · Limitations · MAD vs Range vs SD · Practice quiz
Measures of Dispersion
Unit III · Lecture 17

🤔 Why Do We Need Measures of Dispersion?


📖 The Problem with Averages Alone

A measure of central tendency (mean, median, mode) tells us the centre of the data — but it tells us nothing about how the data is spread out around that centre. Two datasets can have the same mean but be fundamentally different in their variability.


💡 The Tale of Two Classes

Consider two classes that both scored an average of 60 marks in an exam:

Class A: 58, 59, 60, 61, 62  →  Mean = 60  →  Scores are tightly clustered around the mean.

Class B: 20, 40, 60, 80, 100  →  Mean = 60  →  Scores are widely spread across the range.

Both classes have the same average, but their performance patterns are completely different. Class A is consistent; Class B has extreme variation. The mean alone cannot capture this difference. We need a measure of dispersion.


💬 Key Insight: A measure of central tendency without a measure of dispersion is like describing a person only by their average location — without mentioning whether they are standing still or running in circles.
Measures of Dispersion
Unit III · Lecture 17

📊 What is Dispersion?


📖 Formal Definition

Dispersion (also called scatter, spread, or variability) refers to the extent to which individual data values deviate from a central value (usually the mean or median). A measure of dispersion quantifies how much the data varies.


💡 Analogy: Archery Targets

Imagine two archers shooting at a target. Both hit the bullseye on average (same centre). But Archer A's arrows are tightly grouped near the centre (low dispersion), while Archer B's arrows are scattered all over the target (high dispersion). Measures of dispersion tell us how "tight" or "scattered" the data is around the centre.


Common Measures of Dispersion:

Range
Maximum − Minimum
Mean Absolute Deviation
Average of absolute deviations
Variance & Standard Deviation
Average of squared deviations

💡 Today's Focus: We will study the Mean Absolute Deviation (MAD) — one of the simplest and most intuitive measures of dispersion.
Measures of Dispersion
Unit III · Lecture 17

📐 What is Mean Absolute Deviation?


📖 Formal Definition

The Mean Absolute Deviation (MAD) is the arithmetic mean of the absolute deviations of each observation from a central value (usually the mean or median). It tells us, on average, how far each data point is from the centre — regardless of direction.


📖 Breaking Down the Name

"Deviation" = the difference between a data value and the central value (xᵢ − x̄).

"Absolute" = we take the absolute value |xᵢ − x̄| so that negative deviations don't cancel out positive ones.

"Mean" = we average all these absolute deviations by dividing by the number of observations.

💡 Analogy: Daily Commute

Suppose your office is 10 km from home. Some days you travel 8 km (shortcut), other days 12 km (detour), and sometimes exactly 10 km. The MAD of your daily distances from 10 km tells you, on average, how much your commute deviates from the expected 10 km — regardless of whether you went shorter or longer.

Measures of Dispersion
Unit III · Lecture 17

📝 Formula for Mean Absolute Deviation


📖 MAD about the Mean (Ungrouped Data)

MAD = (1/n) × Σ |xᵢ − x̄|

Where:
  • xᵢ = each individual observation (i = 1, 2, 3, …, n)
  • x̄ = arithmetic mean of the data
  • |xᵢ − x̄| = absolute deviation of each observation from the mean
  • n = total number of observations
  • Σ = summation over all observations


📖 MAD about the Mean (Grouped / Frequency Data)

MAD = (1/N) × Σ fᵢ |xᵢ − x̄|

Where:
  • fᵢ = frequency of the i-th class / value
  • xᵢ = mid-point (or value) of the i-th class
  • x̄ = weighted mean = Σfᵢxᵢ / Σfᵢ
  • N = Σfᵢ = total frequency


💡 Why Absolute Value? Without the absolute value, positive and negative deviations would cancel each other out, and the sum would always equal zero (since Σ(xᵢ − x̄) = 0 by definition). The absolute value ensures every deviation contributes positively to the measure of spread.
Measures of Dispersion
Unit III · Lecture 17

🪜 Step-by-Step Method to Calculate MAD


1 Find the Mean (x̄): Add all observations and divide by the number of observations. x̄ = Σxᵢ / n
2 Calculate each Deviation: Subtract the mean from each observation: dᵢ = xᵢ − x̄
3 Take Absolute Deviations: Ignore the sign: |dᵢ| = |xᵢ − x̄|. This ensures all deviations are positive.
4 Sum the Absolute Deviations: Add all the absolute deviations: Σ|xᵢ − x̄|
5 Divide by n: MAD = (1/n) × Σ|xᵢ − x̄|. This gives the average absolute deviation from the mean.

💡 Remember: The MAD is always ≥ 0. A MAD of 0 means all values are identical (no spread at all). The larger the MAD, the more spread out the data is.
Measures of Dispersion
Unit III · Lecture 17

✏️ Example 1: MAD of Ungrouped Data


📝 Problem

Find the Mean Absolute Deviation of the following marks obtained by 5 students: 10, 15, 20, 25, 30


📖 Solution — Step by Step

Step 1: Find the Mean
x̄ = (10 + 15 + 20 + 25 + 30) / 5 = 100 / 5 = 20

Step 2: Calculate Deviations and Absolute Deviations


xᵢ (Marks)Deviation (xᵢ − x̄)|xᵢ − x̄|
1010 − 20 = −1010
1515 − 20 = −55
2020 − 20 = 00
2525 − 20 = +55
3030 − 20 = +1010
Σ|xᵢ − x̄| =30

Mean Absolute Deviation

MAD = 30 / 5 = 6

On average, each student's marks deviate by 6 marks from the mean of 20.

Measures of Dispersion
Unit III · Lecture 17

✏️ Example 2: MAD of Daily Temperatures


📝 Problem

The daily maximum temperatures (°C) recorded in a city for a week were: 32, 35, 28, 30, 34, 36, 29. Find the MAD about the mean.


📖 Solution

Step 1: Find the Mean
x̄ = (32 + 35 + 28 + 30 + 34 + 36 + 29) / 7 = 224 / 7 = 32°C

Step 2: Calculate Deviations and Absolute Deviations


xᵢ (°C)xᵢ − x̄|xᵢ − x̄|
3200
35+33
28−44
30−22
34+22
36+44
29−33
Σ|xᵢ − x̄| =18

Mean Absolute Deviation

MAD = 18 / 7 ≈ 2.57°C

On average, the daily temperature deviates by approximately 2.57°C from the weekly mean of 32°C.

Measures of Dispersion
Unit III · Lecture 17

✏️ Example 3: MAD of Frequency Distribution


📝 Problem

The number of goals scored by a football team in 20 matches is given below. Find the MAD.


Goals (xᵢ)01234
Frequency (fᵢ)35732

📖 Solution

Step 1: Find the Weighted Mean
N = Σfᵢ = 3 + 5 + 7 + 3 + 2 = 20
Σfᵢxᵢ = (3×0) + (5×1) + (7×2) + (3×3) + (2×4) = 0 + 5 + 14 + 9 + 8 = 36
x̄ = 36 / 20 = 1.8

Step 2: Calculate fᵢ × |xᵢ − x̄| for each class


xᵢfᵢxᵢ − x̄|xᵢ − x̄|fᵢ × |xᵢ − x̄|
03−1.81.85.4
15−0.80.84.0
27+0.20.21.4
33+1.21.23.6
42+2.22.24.4
Σ fᵢ|xᵢ − x̄| =18.8

Mean Absolute Deviation

MAD = 18.8 / 20 = 0.94 goals

On average, the number of goals per match deviates by 0.94 goals from the mean of 1.8 goals.

Measures of Dispersion
Unit III · Lecture 17

✏️ Example 4: MAD of Grouped Data (Class Intervals)


📝 Problem

The marks obtained by 40 students are grouped as follows. Find the MAD about the mean.


Marks0–1010–2020–3030–4040–50
No. of Students (fᵢ)481495

📖 Solution

Step 1: Find Mid-points (xᵢ) and the Mean
Mid-points: 5, 15, 25, 35, 45
N = 4 + 8 + 14 + 9 + 5 = 40
Σfᵢxᵢ = (4×5) + (8×15) + (14×25) + (9×35) + (5×45) = 20 + 120 + 350 + 315 + 225 = 1030
x̄ = 1030 / 40 = 25.75


Marksxᵢfᵢfᵢxᵢ|xᵢ − x̄|fᵢ|xᵢ − x̄|
0–10542020.7583.00
10–2015812010.7586.00
20–3025143500.7510.50
30–403593159.2583.25
40–5045522519.2596.25
Totals:1030359.00

Mean Absolute Deviation

MAD = 359.00 / 40 = 8.975 marks

On average, each student's marks deviate by approximately 8.98 marks from the mean of 25.75.

Measures of Dispersion
Unit III · Lecture 17

📐 MAD about the Median


📖 Alternative Formulation

While MAD is most commonly calculated about the mean, it can also be calculated about the median. In fact, the median minimises the sum of absolute deviations, making MAD about the median a theoretically important measure.

MAD (about median) = (1/n) × Σ |xᵢ − Mₑ|

Where Mₑ is the median of the data.


📝 Quick Example

Using the same data: 10, 15, 20, 25, 30

Median (Mₑ) = 20 (the middle value)

|10−20| + |15−20| + |20−20| + |25−20| + |30−20| = 10 + 5 + 0 + 5 + 10 = 30

MAD (about median) = 30 / 5 = 6

In this case, the mean and median are both 20, so MAD about mean = MAD about median. This will not always be the case.


💡 When to Use MAD about Mean

• When the data is symmetric (mean ≈ median)
• When you want a measure tied to the arithmetic mean
• Most common in introductory statistics

💡 When to Use MAD about Median

• When the data is skewed or has outliers
• The median is more robust to extreme values
• MAD about median is always ≤ MAD about mean

Measures of Dispersion
Unit III · Lecture 17

🎬 Interactive: MAD Calculator


Enter your own data (comma-separated numbers) and watch the MAD being calculated step by step:



Measures of Dispersion
Unit III · Lecture 17

🎬 Visual: See the Spread


Compare two datasets with the same mean but different MAD values. Click each dataset to visualise its spread:


🎯

Dataset A: Low MAD

48, 49, 50, 51, 52

💥

Dataset B: High MAD

30, 40, 50, 60, 70

Measures of Dispersion
Unit III · Lecture 17

🔑 Properties of Mean Absolute Deviation


Measures of Dispersion
Unit III · Lecture 17

⚖️ Advantages & Limitations of MAD


✅ Advantages

1. Simple to understand: The concept of "average distance from the mean" is intuitive and easy to explain to non-statisticians.

2. Easy to compute: Requires only basic arithmetic — addition, subtraction, and division. No squaring or square roots needed.

3. Uses all observations: Unlike the range, MAD considers every data point, providing a more complete picture of variability.

4. Less affected by outliers: Extreme values have a smaller effect on MAD than on variance or standard deviation (because deviations are not squared).

5. Rigidly defined: MAD has a unique value for any given dataset — it is not dependent on subjective choices.

❌ Limitations

1. Not algebraically tractable: MAD cannot be easily manipulated mathematically. It does not decompose neatly into within-group and between-group components.

2. Not suitable for further statistical analysis: Most advanced statistical techniques (hypothesis testing, regression, ANOVA) use variance and standard deviation, not MAD.

3. Ignores direction of deviation: By taking absolute values, MAD loses information about whether values tend to be above or below the mean.

4. Not widely used in practice: Standard deviation and variance are the dominant measures of dispersion in most fields. MAD is primarily used as a teaching tool and in specific applications (e.g., forecasting error measurement).

5. Open-end classes are problematic: For grouped data with open-end intervals (e.g., "50 and above"), MAD cannot be computed without assumptions.

Measures of Dispersion
Unit III · Lecture 17

⚖️ MAD vs Range vs Standard Deviation


FeatureRangeMADStandard Deviation (σ)
DefinitionMaximum − MinimumAverage of |xᵢ − x̄|√(Average of (xᵢ − x̄)²)
Uses all data?No (only 2 values)YesYes
Outlier sensitivityVery highModerateHigh (due to squaring)
Ease of calculationEasiestEasyModerate
Algebraic tractabilityPoorPoorExcellent
Used in further analysis?RarelyRarelyExtensively (hypothesis testing, regression, etc.)
UnitsSame as dataSame as dataSame as data
Best forQuick, rough comparisonIntuitive understanding of spreadRigorous statistical analysis

💡 Key Takeaway: MAD is a stepping stone — it helps you understand the concept of dispersion intuitively before moving to the more mathematically powerful (but less intuitive) variance and standard deviation.
Measures of Dispersion
Unit III · Lecture 17

📐 Coefficient of Mean Absolute Deviation


📖 Definition

The Coefficient of MAD is a relative measure of dispersion that allows comparison between datasets with different units or different means. It is a dimensionless ratio.

Coefficient of MAD = MAD / x̄

It is expressed as a ratio (not a percentage). A smaller coefficient indicates more consistency; a larger coefficient indicates more variability.


📝 Example: Comparing Two Factories

Factory A: Mean daily output = 200 units, MAD = 10 units
Coefficient of MAD = 10 / 200 = 0.05

Factory B: Mean daily output = 500 units, MAD = 30 units
Coefficient of MAD = 30 / 500 = 0.06

Even though Factory B has a larger absolute MAD (30 vs 10), Factory A has a slightly smaller coefficient (0.05 vs 0.06), meaning Factory A is relatively more consistent in its output.


💡 Why use the coefficient? You cannot directly compare MAD = 10 units (factory output) with MAD = 5°C (temperature) — they have different units. The coefficient removes the units, making comparison meaningful.
Measures of Dispersion
Unit III · Lecture 17

🎬 Interactive: Compare Two Datasets


Enter two datasets and compare their means, MADs, and coefficients of MAD side by side:




Measures of Dispersion
Unit III · Lecture 17

🔑 Summary: Mean Absolute Deviation


Measures of Dispersion
Unit III · Lecture 17

🧠 Quick Quiz — Lecture 17


Q1: The Mean Absolute Deviation is always:

A) Positive
B) Non-negative (≥ 0)
C) Negative
D) Equal to zero

Q2: If all observations in a dataset are identical, the MAD is:

A) 1
B) 0
C) Equal to the mean
D) Cannot be determined

Q3: Why do we take the absolute value of deviations when computing MAD?

A) To make the calculation easier
B) To prevent positive and negative deviations from cancelling each other out
C) To increase the value of MAD
D) Because deviations are always negative

Q4: The data is: 5, 10, 15. The mean is 10. What is the MAD?

A) 10
B) 5
C) 3.33
D) 15

Q5: Which of the following is a limitation of MAD?

A) It does not use all observations
B) It is not algebraically tractable for advanced statistical analysis
C) It can only be calculated for grouped data
D) It is always equal to the standard deviation

Q6: MAD about the median is always:

A) Greater than MAD about the mean
B) Less than or equal to MAD about the mean
C) Equal to MAD about the mean
D) Double the MAD about the mean

Q7: If y = 3x + 5, and MAD(x) = 4, then MAD(y) is:

A) 17
B) 12
C) 4
D) 7

Q8: The Coefficient of MAD is useful because:

A) It always equals 1
B) It measures the mean of the data
C) It allows comparison of dispersion between datasets with different units or scales
D) It replaces the need for calculating the mean
Measures of Dispersion
Unit III · Lecture 17

📝 Homework & Practice


📝 Practice Tasks

1. Calculate the Mean Absolute Deviation of the following dataset: 4, 8, 6, 10, 12

2. The weekly pocket expenses (in ₹) of 6 students are: 150, 200, 180, 220, 170, 250. Find:
   (a) The mean expense
   (b) The MAD about the mean
   (c) Interpret the result in one sentence

3. Find the MAD for the following frequency distribution:
   Value: 2, 4, 6, 8, 10
   Frequency: 3, 5, 8, 4, 2

4. Find the MAD for the following grouped data:
   Class: 0–10, 10–20, 20–30, 30–40
   Frequency: 5, 10, 15, 10

5. Two cricketers scored the following runs in 5 innings:
   Cricketer A: 30, 50, 40, 60, 20
   Cricketer B: 35, 45, 40, 55, 25
   (a) Who has the higher mean?
   (b) Who has the lower MAD?
   (c) Who is more consistent? Explain.

6. Explain why the standard deviation is generally preferred over MAD in advanced statistical analysis, despite MAD being simpler to compute.

7. BONUS: Prove that Σ(xᵢ − x̄) = 0 for any dataset. Then explain why this property makes the absolute value necessary in the MAD formula.

💡 Tip: Always verify your MAD calculation by checking that the sum of deviations (without absolute values) equals zero. If it doesn't, recheck your mean calculation.
Measures of Dispersion
Unit III · Lecture 17

Thank You!


Questions? Let's discuss!


Upcoming in Unit III

Lecture 18: Variance and Standard Deviation
Lecture 19: Standard Deviation — Properties & Shortcut Methods
Lecture 20: Coefficient of Variation & Comparison of Distributions

Unit III · Lecture 17 · BDS113 Introduction to Statistics · B.Sc. Data Science, Semester II