This document defines variance and standard deviation, which are measures of how spread out numbers are in a data set from the mean. It explains how to calculate variance by finding the mean, subtracting it from each value, squaring the deviations, summing them and dividing by the number of items. Standard deviation is the square root of variance and measures how far data points on average lie from the mean, with a higher value indicating more dispersion from the mean. Formulas for calculating both are provided.