beginner 20 minutes

Z-Scores and Standardization

Master z-scores to compare values across different distributions. Learn standardization, the empirical rule, and how to use z-tables.

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The Problem: Comparing Apples and Oranges

How do you compare performance across different scales?

The Comparison Problem

Which is more impressive?

  • Scoring 720 on the SAT Math section
  • Scoring 28 on the ACT Math section

These tests have different scales, different means, and different standard deviations. Raw scores can’t be compared directly!

The solution: Standardize both scores using z-scores.

What is a Z-Score?

A z-score (standard score) tells you how many standard deviations a value is from the mean.

Z-Score Formula

z=xμσz = \frac{x - \mu}{\sigma}

Where:

  • xx = individual value
  • μ\mu = population mean
  • σ\sigma = population standard deviation

For sample data: z=xxˉsz = \frac{x - \bar{x}}{s}

Interpreting Z-Scores

Z-ScoreInterpretation
z = 0Exactly at the mean
z = 1One standard deviation above the mean
z = -1One standard deviation below the mean
z = 2Two standard deviations above (unusual)
z = -2Two standard deviations below (unusual)
z > 3 or z < -3Very unusual (potential outlier)
Calculating a Z-Score

Exam scores have mean μ=75\mu = 75 and standard deviation σ=8\sigma = 8.

What is the z-score for a student who scored 91?

z=91758=168=2.0z = \frac{91 - 75}{8} = \frac{16}{8} = 2.0

Interpretation: This student scored 2 standard deviations above the mean—an excellent performance!

Comparing Different Distributions

Z-scores allow fair comparisons across any distributions with known means and standard deviations.

SAT vs ACT Comparison

SAT Math: Mean = 500, SD = 100 ACT Math: Mean = 20, SD = 5

Student A: SAT Math = 720 z=720500100=2.2z = \frac{720 - 500}{100} = 2.2

Student B: ACT Math = 28 z=28205=1.6z = \frac{28 - 20}{5} = 1.6

Conclusion: Student A performed relatively better (2.2 standard deviations above mean vs. 1.6).

Properties of Z-Scores

When you convert an entire dataset to z-scores:

  1. Mean of z-scores = 0
  2. Standard deviation of z-scores = 1
  3. Shape of distribution is unchanged
  4. Relative positions are preserved
Standardized Dataset

Original data: 60, 70, 80, 90, 100 (mean = 80, SD = 14.14)

Z-scores:

  • 60: z=(6080)/14.14=1.41z = (60-80)/14.14 = -1.41
  • 70: z=(7080)/14.14=0.71z = (70-80)/14.14 = -0.71
  • 80: z=(8080)/14.14=0z = (80-80)/14.14 = 0
  • 90: z=(9080)/14.14=+0.71z = (90-80)/14.14 = +0.71
  • 100: z=(10080)/14.14=+1.41z = (100-80)/14.14 = +1.41

Verify: Mean of z-scores = 0, SD of z-scores = 1 ✓

The Standard Normal Distribution

When data is normally distributed and we convert to z-scores, we get the standard normal distribution:

  • Mean = 0
  • Standard deviation = 1
  • Denoted as N(0,1)N(0, 1) or ZZ
Standard Normal Distribution

If XN(μ,σ)X \sim N(\mu, \sigma), then Z=XμσN(0,1)Z = \frac{X - \mu}{\sigma} \sim N(0, 1)

The Empirical Rule (68-95-99.7 Rule)

For normal distributions, z-scores have predictable percentages:

Empirical Rule
  • 68% of data falls within z=±1z = \pm 1 (within 1 SD of mean)
  • 95% of data falls within z=±2z = \pm 2 (within 2 SD of mean)
  • 99.7% of data falls within z=±3z = \pm 3 (within 3 SD of mean)
Applying the Empirical Rule

Adult male heights: Mean = 70 inches, SD = 3 inches

Within 1 SD (z between -1 and 1):

  • Range: 70 ± 3 = 67 to 73 inches
  • Contains: 68% of men

Within 2 SD (z between -2 and 2):

  • Range: 70 ± 6 = 64 to 76 inches
  • Contains: 95% of men

Within 3 SD (z between -3 and 3):

  • Range: 70 ± 9 = 61 to 79 inches
  • Contains: 99.7% of men

Only 0.3% of men are shorter than 61” or taller than 79”!

Finding Probabilities with Z-Scores

For normal distributions, z-scores let us find probabilities using z-tables or calculators.

Using a Z-Table

A z-table shows the area (probability) to the left of any z-score.

Finding P(Z < 1.5)

What percentage of values fall below z = 1.5?

From z-table: P(Z < 1.5) = 0.9332 or 93.32%

Interpretation: 93.32% of values in a standard normal distribution are below z = 1.5.

Common Z-Table Values

Z-ScoreArea to LeftArea to Right
-2.000.02280.9772
-1.960.02500.9750
-1.000.15870.8413
0.000.50000.5000
1.000.84130.1587
1.960.97500.0250
2.000.97720.0228

Types of Probability Questions

Three Types of Z-Score Problems

Given a normal distribution with μ=100\mu = 100 and σ=15\sigma = 15:

Type 1: P(X < value) — “less than” P(X < 115)?

  • z=(115100)/15=1.0z = (115-100)/15 = 1.0
  • P(Z < 1.0) = 0.8413 (from table)

Type 2: P(X > value) — “greater than” P(X > 115)?

  • Use complement: P(X > 115) = 1 - P(X < 115)
  • = 1 - 0.8413 = 0.1587

Type 3: P(a < X < b) — “between” P(90 < X < 115)?

  • z1=(90100)/15=0.67z_1 = (90-100)/15 = -0.67 → P(Z < -0.67) = 0.2514
  • z2=(115100)/15=1.0z_2 = (115-100)/15 = 1.0 → P(Z < 1.0) = 0.8413
  • P(90 < X < 115) = 0.8413 - 0.2514 = 0.5899

Finding Values from Percentiles

You can also work backwards: given a percentile, find the corresponding value.

Finding the 90th Percentile

IQ scores: μ=100\mu = 100, σ=15\sigma = 15

What IQ score is at the 90th percentile?

Step 1: Find z-score for 90th percentile

  • From z-table: z = 1.28 (area = 0.90)

Step 2: Convert z back to x x=μ+zσ=100+1.28(15)=100+19.2=119.2x = \mu + z \cdot \sigma = 100 + 1.28(15) = 100 + 19.2 = 119.2

An IQ of 119 is at the 90th percentile.

Converting Z-Score to Raw Score

x=μ+zσx = \mu + z \cdot \sigma

Z-Scores as Outlier Detection

Z-scores provide another method for identifying outliers:

Z-Score RangeInterpretation
$z
$2 \leqz
$z
Z-Score Outlier Detection

Class exam: Mean = 78, SD = 10

Student scores: 95, 82, 71, 45, 88

Z-scores:

  • 95: z = (95-78)/10 = 1.7 (typical)
  • 82: z = (82-78)/10 = 0.4 (typical)
  • 71: z = (71-78)/10 = -0.7 (typical)
  • 45: z = (45-78)/10 = -3.3 (outlier!)
  • 88: z = (88-78)/10 = 1.0 (typical)

The score of 45 is more than 3 standard deviations below the mean—investigate this student’s situation.

Applications of Z-Scores

1. Quality Control

Manufacturing processes monitor z-scores to detect when production goes “out of control.”

2. Academic Testing

SAT, GRE, IQ tests all report standardized scores based on z-scores.

3. Financial Analysis

Beta values in finance are essentially z-scores measuring stock volatility relative to the market.

4. Medical Diagnostics

Lab results are often reported with reference to population z-scores.

Medical Example

A patient’s cholesterol is 245 mg/dL. Population: Mean = 200 mg/dL, SD = 25 mg/dL

z=24520025=1.8z = \frac{245 - 200}{25} = 1.8

The patient is 1.8 standard deviations above average—elevated but not extremely unusual. About 3.6% of the population has higher cholesterol (P(Z > 1.8) ≈ 0.036).

Comparing Z-Score and Percentile Methods

AspectZ-ScorePercentile
ScaleSD units from meanPercentage of data below
RequiresMean and SDSorted data
Assumes normalityFor probability calcsNo
Negative valuesYes (below mean)Never
Typical range-3 to +31 to 99

Summary

In this lesson, you learned:

  • Z-scores measure distance from mean in standard deviation units: z=(xμ)/σz = (x - \mu)/\sigma
  • Z-scores allow comparison across different distributions
  • Standardized data has mean = 0 and SD = 1
  • The empirical rule (68-95-99.7) applies to normal distributions
  • Z-tables convert z-scores to probabilities and vice versa
  • Z-scores of |z| > 2 indicate unusual values; |z| > 3 suggests outliers
  • Converting back: x=μ+zσx = \mu + z \cdot \sigma

Practice Problems

1. Exam scores have mean 72 and SD 9. Calculate the z-score for: a) A score of 81 b) A score of 63 c) A score of 72

2. Heights of women have mean 64 inches and SD 2.5 inches. Using the empirical rule: a) What range contains 68% of women’s heights? b) What percentage of women are taller than 69 inches?

3. GRE Verbal: Mean = 150, SD = 8. GRE Quant: Mean = 153, SD = 9. A student scores 162 on Verbal and 171 on Quant. On which section did they perform relatively better?

4. If z = 1.65, and the distribution has mean 50 and SD 10, what is the raw score?

Click to see answers

1. a) z = (81-72)/9 = 1.0 b) z = (63-72)/9 = -1.0 c) z = (72-72)/9 = 0

2. a) 64 ± 2.5 = 61.5 to 66.5 inches b) 69 inches is at z = (69-64)/2.5 = 2.0

  • 95% within ±2 SD means 2.5% above z = 2
  • About 2.5% are taller than 69 inches

3.

  • Verbal: z = (162-150)/8 = 1.5
  • Quant: z = (171-153)/9 = 2.0
  • Quant performance was relatively better (z = 2.0 vs z = 1.5)

4. x = μ + z·σ = 50 + 1.65(10) = 66.5

Next Steps

Now that you understand z-scores:

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