Z-score is a statistical measure that tells us how many standard deviations a data point is from the population mean. It is also known as the standard score. A positive z-score indicates that the data point is above the mean, while a negative z-score indicates that the data point is below the mean.
Z-score is calculated using the formula:
z = (x - μ) / σ
Where, x is the data point, μ is the population mean and σ is the standard deviation of the population.
Z-score is used in various statistical applications, such as hypothesis testing, confidence intervals, and regression analysis. It is also useful in comparing different sets of data, as it standardizes the data and allows for easier comparison. A z-score of 0 indicates that the data point is exactly at the mean, while a z-score of ±1 indicates that the data point is one standard deviation away from the mean, and so on.
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