What are Z-scores and How are they Calculated?

What are Z-scores and How are they Calculated?

Standard normal curves and Z-scores are concepts that are often covered at school or college. Abdulla provides a refresher on the subject by outlining an example of a standard normal curve and identifying some useful excel functions to calculate a Z-score.
Overview

Z-scores are a crucial aspect of understanding probability distributions. The z-score can be defined as the distance from the mean as measured in standard deviations.

Key learning objectives:

  • Define z-score

  • Learn how to calculate z-scores

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Summary
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Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

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