The Z-score (also called standard score) can be defined as the number of standard deviations away from the population mean that a certain datapoint is.
This can tells us how usual or unusual a datapoint is.
Example Let’s say we have this dataset
2,2,3,2,5,1,6
With mean and std .
Remember the definition of te z-score, then we can compute it for a datapoint by using the formula
The numerator tells us how far the datapoint is from the mean. Dividing it by the standard deviation transforms the unit of measure from a “unit” to the number of standard deviations (we want to know how many standard deviations away we are from the mean).
Related
- Z-score is used in the z-test;
- Converting the values from raw values to z-scores is called standardization, which is a type of Normalization.
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