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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).
Two Methods: Help Calculating Variance Calculating Variance. Calculating variance allows you to measure how far a set of numbers is spread out. Variance is one of the descriptors of probability distribution, and it describes how far numbers lie from the mean.Variance is often used in conjunction with standard deviation, which is the square root of the variance.If you want to know how to calculate the variance of a set of data points, just follow these steps.ariance is often used in conjunction with standard deviation, which is the square root of the variance. If you want to know how to calculate the variance of a set of data points, just follow these steps.