VAR function calculates the variance of a sample of data points. It measures how spread out the data is from its mean value, similar to the VARP function.
The VAR function in Excel is a versatile tool used to calculate the variance of a data set. This function can be used to determine the measure of the spread of a given set of numbers.
You can use this function to measure any number of data points. It’s an easy-to-use function that requires only two parameters. The first parameter is the range of values that you want to measure and the second parameter is the population that you want to measure. By default, the population is assumed to be the entire range of values.
The function will then calculate the variance for the data set based on the parameters that you have specified. The variance is calculated by first subtracting the mean from each value in the data set. The differences are then squared and added together. The sum is then divided by the number of values in the data set minus one.
It can be used in various ways, such as to measure the spread of a data set, the variability between data points, or the standard deviation of a data set. It’s also used to compare data sets and determine which one has the highest variance.
=VAR(number1, number2, number3, …)
Where “number1, number2, number, …” represents the list of arguments.
The VAR function calculates the variance of a sample of data points, while the VARP function is used to calculate the variance of an entire population. The VAR function uses the sample size minus one in the denominator of the variance formula, while the VARP function uses the total population size.
To calculate variance in Excel, you can use either the VARP or VAR function, depending on whether your data set represents the entire population or a sample of it. Here are the steps to calculate variance using the VAR function as an example:
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