mean absolute deviation is always smaller than square deviation!? consider the following data o.1, 0.3 mean = 0.2 mean absolute deviation: (|0.1-0.2| + |0.3-0.2|)/2 = 0.1 square deviation ((0.1-0.2)^2 +(0.3-0.2)^2) = 0.01
Yes, b/c the st. dev gives more weight to larger deviations
have you seen my example? could you explain what wrong in my example? mean absolute deviation: (|0.1-0.2| + |0.3-0.2|)/2 = 0.1 square deviation ((0.1-0.2)^2 +(0.3-0.2)^2)/2 = 0.01
another question: from free sample “For a bank, lending money and earning interest on it is an operating activity; but for a manufacturing company, they are not in the business of lending or investing money and the interest they receive would be more correctly classified as an investing activity” if I am in US GAAP should I still classify interest paid by non-financial institution as investment activities? or should be investment activities but the cash flow will be go to operating cash flow?
i am confused… should we classify interest expense for a non-financial institution complied with US GAAP be operation or investment cash flow??