How to Calculate Probability from Z-Score in Excel (with Quick Steps)

 

What Is Z-Score?

Z-Score is a special type of value that indicates how far the value is from the mean. The general formula for the Z-score is:

  • Z represents the value of the Z-score
  • X  is the value of any case
  • µ stands for the mean value
  • σ represents the value of the Standard Deviation

Read More: How to Calculate Z Score in Excel


What Is Probability?

Probability represents the possibility of occurring any events with respect to the total number of events. The mathematical expression of probability is:


How to Calculate Probability from Z-Score in Excel with Quick Steps

We’ll consider a dataset of 10 students at a school. The names of the students are in column B and their examination marks are in column C.


Step 1 – Estimate the Mean Value of the Dataset

  • Select cell F5.
  • Insert the following formula in the cell.

=AVERAGE(C5:C14)

  • Press Enter.

Estimate Mean Value of Dataset to Calculate Probability from Z-Score

  • You will get the value of the mean of our dataset.

Step 2 – Evaluate the Standard Deviation

  • Select cell F6.
  • Use the following formula in the cell.

=STDEV.P(C5:C14)

  • Press the Enter key.

Evaluate Standard Deviation to Calculate Probability from Z-Score

  • You will get the value of the standard deviation.

Step 3 – Determine the Z-Score

  • Insert a Column between columns C and D.
  • Rename the column as Z-Score.

Determine Z-Score Value to Calculate Probability from Z-Score

  • Select cell D5 and use the following formula in the cell:

=(C5-$G$5)/$G$6

  • Press Enter.

Determine Z-Score Value to Calculate Probability from Z-Score

  • Double-click on the Fill Handle icon to copy the formula down to cell D14.

Determine Z-Score Value to Calculate Probability from Z-Score

  • You will get all the values of Z-Scores for the datasheet.

Step 4 – Calculate the Probability for Each Data Point

  • Insert a Column between columns D and E.
  • Rename the column as Probability.

Calculate Probability from Z-Score Value for Each Case

  • Select cell E5 and insert the following formula for the cell:

=NORM.DIST(C5,$H$5,$H$6,TRUE)

  • Press Enter.

Calculate Probability from Z-Score Value for Each Case

  • Double-click on the Fill Handle icon to copy the formula down to cell E14.

Calculate Probability from Z-Score Value for Each Case

  • You will get all the values of probability.

Interpretation of the Result

We are illustrating the result for cell E5. The value of probability is 0.664. The value means that the possibility of happening that event is 0.664 with respect to the total number of events.

Read More: How to Calculate P Value from Z Score in Excel


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Soumik Dutta
Soumik Dutta

Soumik Dutta, having earned a BSc in Naval Architecture & Engineering from Bangladesh University of Engineering and Technology, plays a key role as an Excel & VBA Content Developer at ExcelDemy. Driven by a profound passion for research and innovation, he actively immerses himself in Excel. In his role, Soumik not only skillfully addresses complex challenges but also demonstrates enthusiasm and expertise in gracefully navigating tough situations, underscoring his unwavering commitment to consistently deliver exceptional, high-quality content that... Read Full Bio

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