Z = (X − μ) / σ
Z shows how many standard deviations a value is from the mean.
A Z score measures how many standard deviations a data point is from the mean of a dataset.
Z scores are widely used in statistics, probability, research analysis and finance.
It indicates how far a value is from the mean in terms of standard deviations.
Values between -2 and +2 are generally considered within the normal range.