Z-Score
A Z-Score, also known as a standard score, is a statistical measurement that describes a value’s relationship to the mean of a group of values. It is expressed as the number of standard deviations a data point is from the mean. Z-Scores are useful in identifying how unusual or typical a particular data point is within a dataset. They are widely used in various fields such as finance, research, and quality control to standardize different datasets and make them comparable. The Z-Score is calculated using the formula:
where ( X ) is the value being measured, ( \mu ) is the mean of the dataset, and ( \sigma ) is the standard deviation of the dataset. By converting data points into Z-Scores, one can easily determine how far and in what direction (above or below the mean) a particular value lies.
What is Z-Score?
A Z-Score is a statistical measurement that indicates how many standard deviations a data point is from the mean of a dataset. It helps in understanding whether a data point is typical or atypical compared to the rest of the data.
How is Z-Score Calculated?
The Z-Score is calculated using the formula:
where:
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( X ) is the value being measured,
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( \mu ) is the mean of the dataset,
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( \sigma ) is the standard deviation of the dataset.
This formula helps in standardizing different datasets, making them comparable by converting data points into a common scale based on their distance from the mean.