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What is a 'ZScore'
A Zscore is a statistical measurement of a score's relationship to the mean in a group of scores. A Zscore of 0 means the score is the same as the mean. A Zscore can also be positive or negative, indicating whether it is above or below the mean and by how many standard deviations.
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BREAKING DOWN 'ZScore'
In addition to showing a score's relationship to the mean, the Zscore shows statisticians whether a score is typical or atypical for a particular data set. Zscores also allow analysts to convert scores from different data sets into scores that can be accurately compared to each other. One reallife application of zscores occurs in usability testing.
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What does a ZScore tell a stock analyst about the health of a company?
Learn about the Altman Zscore, what the Zscore measures and what it indicates to an analyst about the health of a company. Read Answer >> 
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