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.
- 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.
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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