The standardized score, commonly referred to as a z-score, represents the number of standard deviations a data point is from the mean of its dataset. This calculation facilitates the comparison of data points across different distributions. For example, consider a student’s performance on two different exams. A raw score of 80 on exam A may seem initially better than a score of 75 on exam B. However, if exam A had a class average of 90 and a standard deviation of 5, while exam B had a class average of 65 and a standard deviation of 10, the standardized score would reveal a different interpretation of the student’s relative performance. A standardized score provides a context for the raw score relative to the distribution of scores within each exam.
Calculating and interpreting standardized scores offers several advantages. It enables comparison of observations from different distributions. Outlier detection becomes more straightforward as standardized scores highlight data points that deviate significantly from the mean. Standardized scores are also foundational for numerous statistical tests and analyses, including hypothesis testing and regression modeling. Historically, the manual calculation of standardized scores was tedious; however, modern statistical software simplifies this process, making it accessible to a wider audience.