How to calculate variance in excel? How to calculate the variance, using Excel formulas? |

The variance is the "average square deviation of the individual results to their average." Interpretation of variance is difficult due to the fact that the (denominator) unit is a squared, in which the given characteristic is measured - it can be stated that the higher the variance, the greater the diversity of the population with the trait.

Accordingly - much more reliable measure is the standard deviation -the square root of the variance. In this situation, the interpretation is simple, because the standard deviation does not square the units . It indicates how many average values deviate + / - from the arithmetic mean.

Returning to the variance function (formula), variance used in Excel uses the following formula:

Formula Excel:

VAR ( value1, value2,. ..)

Value1, value2, .. . is from 1 to 255 argument values that correspond to the sample population.