Statistics & Probability

How to Calculate a Z-Score

A z-score measures how many standard deviations a value lies above or below the mean.

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Quick answer

A z-score measures how many standard deviations a value lies above or below the mean.

Formula or method

z = (x − μ) ÷ σ

Keep units, percentages and time periods consistent. The formula is useful as a transparent check on the calculator result and helps explain why changing one input changes the answer.

Step-by-step

  1. Subtract the mean from the observed value.
  2. Divide by the standard deviation.
  3. Keep the sign.
  4. Interpret the magnitude as standard deviations from the mean.

Worked example

If x=85, mean=75 and standard deviation=5, z=(85−75)/5=2.

How to interpret the result

Positive z-scores are above the mean; negative scores are below it. Probability interpretations require an appropriate distribution model.

When the answer is used for a purchase, loan, payroll decision, construction order, school grade, health estimate or other real-world choice, verify the assumptions that matter in that context. Accurate arithmetic still depends on accurate inputs.

Common mistakes

  • Using variance instead of standard deviation.
  • Dropping the negative sign.
  • Assuming all data are normally distributed.

Frequently asked questions

What does z=0 mean?

The value equals the mean.

What does negative z mean?

The value is below the mean.

Can z exceed 3?

Yes.

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