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How to Calculate Variance in Excel

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From Quick Guide: Excel Formula Guide

Summary: After inserting data into Microsoft Excel, put the cursor into the desired cell and find the VARP function under 'formulas.' Calculate variance in Excel with tips from a software developer in this free video on computer software solutions.

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By Dave Andrews
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Dave Andrews is a software developer with a business and Web site selling programs and other computer services in Franklin, Tenn. Having worked in the IT industry for more than 8...read more

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Video Transcript

"Hi, my name is Dave Andrews. Today, I'm going to show you how to calculate variance in Excel. Let's begin by opening up Excel. Click on the Start button, go to All Programs. Let's find Microsoft Office, just launch Excel. Now, that we have Excel open, let's create a simple spreadsheet. It's going to be sales data, per day. So, to begin, let's just type day here, it's going to be day one, two, three, four, and day five. Let's say on day one, we did thirty-four sales, thirty-two on day two, forty on day three, twenty-three on day four, ten on day five. What we're going to do is calculate the variance of this data. Put your cursor, in the cell that you would like the variance answer to appear. I'm going to place it in B seven, and click on formula's at the top. Now, the formula that we want to run is under the little books icon, which is more functions. Click on it, and go to statistical, and let's find the VARP function, which is variance over population. Now, the very first thing that we're going to select, is the number of days, by highlighting them, and then we're going to click on number two, and highlight the number of sales. Now, just say OK. As you can see, the variance has been placed into this field. My name is Dave Andrews, and I've just showed you how to calculate variance, using Microsoft Excel."

eHow Article: How to Calculate Variance in Excel

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