A sales manager uses the VAR function to analyze the sales figures of three salespeople.
Imagine a sales manager looking at the sales figures for three different salespeople to compare their performances. One of the many statistical functions the manager could use is variance (VAR).
Variance measures how different the individual values of the data are from one another. Data with low variance contains values that are identical or similar: 6, 7, 6, 6, 7. Data with high variance contains values that are not similar: 598, 1, 134, 5, 92.
You'll get to try the variance function in the practice session.