The Z-score, also known as a standard score, indicates how many standard deviations a data point is from the mean. Understanding Z-scores helps interpret individual statistical values relative to the group. This concept is especially helpful in comparing results across different sets of data that may have different means and standard deviations.
To calculate a Z-score, use the formula:
- \( Z = \frac{(X - \mu)}{\sigma} \)
Here, \( X \) represents the individual data point, \( \mu \) is the mean of the dataset, and \( \sigma \) represents the standard deviation.
In our example, Derrick and Julie each wrote two exams. By computing the Z-scores, we can understand how each of their scores relates to the average class performance. For instance, when Derrick scored 80 on the first test, his Z-score of 1.5 indicates he did much better than the average student (who scored around 65).
Z-scores give us a clearer picture of performance. They show how scores stack up against statistical norms, despite raw scores appearing similar.