How to calculate variance using the Data Analysis Toolpak Add-In?

Variance is a measure of how spread out the values are in a dataset. It is calculated by averaging the squared deviations from the mean. A higher variance indicates greater variability among the values, while a lower variance indicates less variability.

There is also a possibility to calculate the Variance without using an Excel formula. Instead of the Var.S formula, you will use an Excel add-in.

The Data Analysis Toolpak Add-In is a free add-in that can be installed in Excel. It provides a number of statistical functions, including the ability to calculate variance.

Calculating Variance using the Data Analysis Toolpak Add-In

Navigate to the Data Tab on the Ribbon. Click the Data Analysis button.

variance data analysis ribbon button

A new window appears. Choose Descriptive Statistics.

variance descriptive statistics

Enter the proper parameters:

  • Input Range: range of your data ($A$1:$C$10 in my example).
  • Labels in first row: there are no labels in my data table.
  • Output Range: choose where you want to get your variance calculated (I chose the same Sheet $G$1:$T$18).
  • Summary statistics: make sure it is checked.

descriptive statistics variance calculations

And this is how you can see my Statistics summary. Sample variance is calculated in row 8.

data analysis toolpak addin variance calculated

The variance will be displayed in a table with additional information such as the count, mean, and standard deviation of the data. If you need to calculate variance for your data, the Data Analysis Toolpak Add-In is a great option.

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