RMD - Relative Mean Difference

Returns the sample relative mean difference.

Syntax

RMD(X)

X

is the input data sample (one/two-dimensional array of cells (e.g., rows or columns)).

Remarks

1. The time series may include missing values (e.g., #N/A, #VALUE!, #NUM!, empty cell), but they will not be included in the calculations.
2. The relative mean difference is defined in terms of the mean difference as follows: $$\mathrm{RMD}= \frac{\mathrm{MD}}{\bar{x}}$$
   where:
   • $\bar{x}$ is the sample mean (average) of the time series.
   • $\mathrm{MD}$ is the mean difference of the time series.
3. The RMD is also equal to twice the Gini coefficient.

Files Examples

Related Links

• Wikipedia - Relative Mean difference.

References

• Hamilton, J.D.; Time Series Analysis, Princeton University Press (1994), ISBN 0-691-04289-6.
• Tsay, Ruey S.; Analysis of Financial Time Series John Wiley & SONS. (2005), ISBN 0-471-690740.