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Variance. Variance (Ï 2) is a measure of the dispersion of a set of data points around their mean value. In other words, variance is a mathematical expectation of the average squared deviations from the mean. It is computed by finding the probability-weighted average of squared deviations from the expected value. Variance measures the variability from an average (volatility).
How the Variance is calculated. 1  Find the average of the numbers in the pivot table data. 2  From each number, subtract the average. 3  Square the calculated difference for each number. 4  Find the average of the squared difference.