Beware: The average of the squares, [itex]\langle j^2 \rangle[/itex], is not equal, in general, to the square of the average, [itex]\langle j \rangle ^2[/itex]
This tells you very explicitly what the interpretation of both quantities should be.
But I guess what the brackets mean is that you have the take the average of what is between them, so pretend { is a bracket. If you know the latex for brackets please let me know.
{j^2} where j is 2,3,4 would be the average of 4 9 16 hence a little above 9 whereas {j}^2 would be 9 exactly, right?
Use \langle and \rangle for pretty brackets (not horrendously bad ones, which are what <> give you).
Otherwise, yes, you have the basic idea now. You should be accustomed to seeing [itex]\langle j^2 \rangle - \langle j \rangle^2 = \sigma_j^2[/itex] as well. This is one formula for the variance.