A Z-score is a statistical measure that tells us how many standard deviations a data point is from the mean. In simpler terms, it quantifies the position of a score within a distribution. The formula for the Z-score is given by:
- \[ Z = \frac{X - \mu}{\sigma} \]
Where \(X\) is the score, \(\mu\) is the mean, and \(\sigma\) is the standard deviation.
To find Peter's Z-score, we identify the percentile he belongs to. Since his score is in the top 3%, he is in the 97th percentile—meaning 97% of students scored below him. To find the exact Z-score for this percentile, we can use a Z-table or calculator, which shows that a Z-score of 1.88 corresponds to the 97th percentile.
Calculating the SAT score using this Z-score involves manipulating the formula to solve for \(X\):
- \[ X = Z \times \sigma + \mu = 1.88 \times 174 + 896 \approx 1223.12 \]
This estimation tells us that scoring at least 1223 places Peter in the top 3% of test-takers.