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A z-score records how many standard deviations a value lies from its mean. How is it computed?
AValue times mean, all over standard deviation
BValue plus mean, all over standard deviation
CMean minus value, all over the sample size
DValue minus mean, all over standard deviation
Answer & Solution
Correct answer: D. Value minus mean, all over standard deviation
1. Start by measuring the gap between the value and its mean.
2. Divide that gap by the standard deviation to express it in standard deviation units.
3. So the z-score is the value minus the mean, all over the standard deviation, and its sign says whether the value is above or below the mean.
_Source: OpenStax Introductory Business Statistics (CC BY 4.0), Ch 2 "Descriptive Statistics", section 2.7 Measures of the Spread of the Data_
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