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Mean Absolute Error

A measure of an AVM’s precision, mean absolute error is the average percentage error that the model exhibits when evaluating the properties in the test sample. However, analysts take the absolute value of the percentage error (i.e., the magnitude or size of the variance) instead of distinguishing between positive and negative error. For example, a mean absolute error of 8.75 percent indicates that, on average, the AVM’s valuations differ from the reference value by 8.75 percent.