The mean deviation is defined as the average of the absolute deviations of values from the average or mean. It is calculated by taking the deviations without considering positive or negative signs. For a set of values X1, X2, X3, etc., the mean deviation is calculated by summing the absolute value of each value minus the mean, and dividing by n. In an example of grouped data, the mean deviation was calculated to be 6.12 for a data set where the mean was 55.08.