Mean absolute deviation is more intuitive than standard deviation because it represents the average deviation from the mean; standard deviation is the square root of the average of squared deviations and lacks physical intuition; for a process with all observations at zero and one observation at a million, standard deviation would be 500,000 while MAD is 50,000.

factualpending

Speaker

Nassim Nicholas Taleb

Evidence Quote

standard deviation is the square root of the sum of the average some squares it's not you know so it doesn't have a physical intuition... if you have the process right with all the observation at zero and uh and one observation at a million... the standard deviation be 500 times being deviation

Source

Nassim Taleb — Meditations on ExtremistanJoseph Noel Walker
Created: 8/11/2026, 7:35:40 AM

My Notes

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