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How to Calculate a Z-Score?

Published in Statistical Analysis 3 mins read

A z-score is calculated to determine how many standard deviations a particular data point is from the population mean. Here's a breakdown of how to calculate it:

Understanding the Z-Score Formula

The formula for calculating a z-score is:

z = (x - μ) / σ

Where:

  • z is the z-score.
  • x is the raw score or the individual data point you are analyzing.
  • μ (mu) is the population mean, representing the average of all data points in the population.
  • σ (sigma) is the population standard deviation, which measures the dispersion or spread of the data around the mean.

Step-by-Step Calculation

Here's a simplified approach to calculating a z-score:

  1. Identify the Raw Score (x): Determine the specific data point you want to analyze.
  2. Find the Population Mean (μ): Obtain the average of the entire dataset (population).
  3. Determine the Population Standard Deviation (σ): Calculate how much the data points vary from the mean in the entire dataset.
  4. Subtract the Mean from the Raw Score: Calculate (x - μ). This indicates how much the raw score deviates from the population mean.
  5. Divide by the Standard Deviation: Divide the result from step 4 by the population standard deviation (σ). This tells you how many standard deviations the raw score is away from the mean.

Example:

Let's say you have a test score (x) of 85. The population mean (μ) for all test scores is 70, and the population standard deviation (σ) is 10.

  1. x = 85
  2. μ = 70
  3. σ = 10

Using the formula, we have:

z = (85 - 70) / 10

z = 15 / 10

z = 1.5

So, a test score of 85 is 1.5 standard deviations above the mean.

Practical Insights

  • Positive Z-Score: A positive z-score means the raw score is above the population mean.
  • Negative Z-Score: A negative z-score means the raw score is below the population mean.
  • Zero Z-Score: A z-score of zero indicates that the raw score is exactly equal to the population mean.
  • Usefulness: Z-scores allow you to compare data points from different distributions.

Summary

The z-score is a standardized score that measures the position of an individual data point within a distribution. It is calculated by subtracting the population mean from the raw score and then dividing by the population standard deviation, as shown in the formula: z = (x - μ) / σ.

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