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Average absolute deviation

Knowing how much a given predicted value deviates from the actual value isn't all that useful by itself. Instead, you want to know which set of predictions is more accurate.

Fortunately, you can combine your knowledge of measures of central tendency with your practice with absolute deviations to see which predictions are more accurate.

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  • In cells L2:M2, compute the average absolute deviation.
  • Calculate the standard deviation of the absolute differences between predicted and actual values in cells L3:M3.

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