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The MAD Is a Measure of the Average of the Absolute

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The MAD is a measure of the average of the absolute discrepancies between the actual and the fitted values in a given time series.


Definitions:

Government's Definition

The official or formal explanation or meaning of a term as provided by a government authority.

T-test

A statistical test used to compare the means of two groups.

Null Hypothesis

A statement in statistics that proposes there is no significance difference or effect, generally serving as the default or starting assumption in hypothesis testing.

Alpha

The threshold for significance in statistical testing, typically set at 0.05, below which the null hypothesis is rejected.

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