The method entails discovering the typical of absolutely the variations between every knowledge level and the imply of the info set. As an illustration, take into account an information set: 2, 4, 6, 8, 10. First, the imply is decided to be 6. Subsequently, absolutely the deviations from the imply for every knowledge level are calculated: |2-6|=4, |4-6|=2, |6-6|=0, |8-6|=2, |10-6|=4. Lastly, the typical of those absolute deviations is computed: (4+2+0+2+4)/5 = 2.4. This worth represents the typical distance of every knowledge level from the middle of the distribution.
This statistical measure provides a strong option to quantify the variability inside an information set. Its utility lies in its resistance to the affect of maximum values, rendering it a extra steady indicator of dispersion than the usual deviation in sure situations. Traditionally, this method has been employed throughout varied fields, together with finance, meteorology, and high quality management, to evaluate the unfold of information and make knowledgeable selections based mostly on its distribution.