## 7/10/2013

### VARIANCE - How to calculate variance in excel? 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.