Z-Score
 |
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 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. |
Related Definitions
Articles Of Interest
-
How To Calculate A Z-Score
Investors need to know how to detect signs of looming bankruptcy. The Z-score can help. -
Spotting Companies In Financial Distress
What are the warning signs that a company is struggling - or worse, sinking - financially? Read on to find out. -
An Overview Of Corporate Bankruptcy
If a company files for bankruptcy, stockholders have the most to lose. Find out why. -
Taking Advantage Of Corporate Decline
A bankrupt company can provide great opportunities for savvy investors. -
Regression Basics For Business Analysis
This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. -
Understanding Leverage Ratios
Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. To lower their risk, investors use a variety of leverage ratios - including the debt, ... -
Breaking Down The Geometric Mean
Understanding portfolio performance, whether for a self-managed, discretionary portfolio or a non-discretionary portfolio, is vital to determining whether the portfolio strategy is working or ... -
Tracking Volatility: How The VIX Is Calculated
When market volatility spikes or stalls, newspapers, websites, bloggers and television commentators all refer to the VIX®. Formally known as the CBOE Volatility Index, the VIX is a benchmark ... -
Why Companies Issue Bonds
When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan between an investor and a corporation. -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity.
Free Annual Reports