  We review some practical aspects of measuring the amplitude of variability in
`red noise' light curves typical of those from Active Galactic Nuclei (AGN).
The quantities commonly used to estimate the variability amplitude in AGN light
curves, such as the fractional rms variability amplitude, F_var, and excess
variance, sigma_XS^2, are examined. Their statistical properties, relationship
to the power spectrum, and uses for investigating the nature of the variability
processes are discussed. We demonstrate that sigma_XS^2 (or similarly F_var)
shows large changes from one part of the light curve to the next, even when the
variability is produced by a stationary process. This limits the usefulness of
these estimators for quantifying differences in variability amplitude between
different sources or from epoch to epoch in one source. Some examples of the
expected scatter in the variance are tabulated for various typical power
spectral shapes, based on Monte Carlo simulations. The excess variance can be
useful for comparing the variability amplitudes of light curves in different
energy bands from the same observation. Monte Carlo simulations are used to
derive a description of the uncertainty in the amplitude expected between
different energy bands (due to measurement errors). Finally, these estimators
are used to demonstrate some variability properties of the bright Seyfert 1
galaxy Markarian 766. The source is found to show a strong, linear correlation
between rms amplitude and flux, and to show significant spectral variability.
