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Z-Score

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Definition of 'Z-Score'

A Z-Score is a statistical measurement of a score's relationship to the mean in a group of scores. A Z-score of 0 means the score is the same as the mean. A Z-score can also be positive or negative, indicating whether it is above or below the mean and by how many standard deviations.
Investopedia Says

Investopedia explains 'Z-Score'

In addition to showing a score's relationship to the mean, the Z-score shows statisticians whether a score is typical or atypical for a particular data set. Z-scores also allow analysts to convert scores from different data sets into scores that can be accurately compared to each other. One real-life application of z-scores occurs in usability testing.

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