# How to Calculate Mean Absolute Error in Excel?

Mean absolute error is the measure of error between the observed and the expected values in a given data set.

Where,

- O stands for Observed values,
- E stands for Expected values,
- n stands for total no. of observations.

Now let us understand it with the help of an example.

**Example:**

Follow the below steps to calculate MAE in Excel:

**Step 1:** Suppose we have the following data:

**Step 2: **According to formulae, let’s calculate the difference between the observed and the expected values.

**Step 3:** Now let’s calculate the absolute values.

**Step 4:** Now we know from the data that n= no of observations and in this the value of n=5. And also the let’s calculate the total sum of |O-E|.

**Step 5:** Now we have the value of Sum of |O-E| and the value of n. Now according to formulae, the Mean Absolute Error is calculated as:

**Step 6: **So the value of MAE is:

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