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How to Calculate Variance In Excel


By gobrain

Jan 1st, 2024

Variance is a statistical tool used to evaluate the dispersion of data in a set. It gives information about how much the individual data points differ from the mean of the set.

And, excel is a widely used software for analyzing datasets, making it important to know how to calculate variance in a spreadsheet. Let's examine the formula for variance and then its application in Excel.

Formula For Calculating Variance

V = (Σ(x - μ)^2 / n)

Where:

  • x is a data in set,
  • μ is the mean,
  • n is the number of values in set
  • Σ is the sum of.

Population vs Sample in Variance

Due to the difficulty in obtaining data for the entire population, a sample is taken and the variance is calculated. As a result, there will be a slight modification in the formula, as follows:

V = (Σ(x - μ)^2 / (n-1))

Calculate Variance In Excel

In Microsoft Excel, you can use the VAR.S function to find the sample standard deviation of a dataset. The formula is:

=VAR.S(range)

Where range represents the group of values for which you want to determine the variance. For example, if your data is located in the range A1:A10, the formula to calculate the variance would be:

=VAR.S(A1:A10)

If you want to calculate the population variance, the formula is:

=VAR.P(range)

How to calculate variance in excel

Conclusion

In this brief guide, we have demonstrated the formulas for population and sample variance and how to calculate them using Microsoft Excel, a widely used spreadsheet for data analysis

Thank you for reading.