**Method 1 – Calculate Z Score Using Conventional Formula**

**Step 1: Calculate Mean of Dataset**

- Select cell
**G4**.

- Enter the following formula in the formula box:

`=AVERAGE(C5:C12)`

- Press
**Enter**to apply the formula.

**Step 2: Calculate Standard Deviation of Dataset**

- Select cell
**G5**.

- Enter the following formula in the formula box.

`=STDEVPA(C5:C12)`

- Press
**Enter**to apply the formula.

**Step 3: Calculate Z Score **

- Select cell
**D5**.

** **

- Enter the following formula in the formula box.

`=(C5-$G$4)/$G$5`

The cell **G4** and cell **G5** denote the mean and standard deviation respectively. We have made these cells absolute by using the (**$**) sign. That means it is fixed.

- Press
**Enter**to apply the formula.

- Use the
**Fill Handle**tool for the remaining cells.

**Method 2 – Use of STANDARDIZE Function to Calculate Z Score**

**Step 1: Calculate Mean of Dataset **

- Select cell
**G4**.

- Go to the
**Formulas**tab in the ribbon. - From the
**Function Library**, select**More Functions**. - In the
**More Functions**option, select**Statistical**.

- In the
**Statistical**section, select the**AVERAGEÂ**function.

- A
**Function Arguments**dialog box will pop up. - In the
**Number1**section, select the total range of cells. - Click on
**OK**.

- It will provide the mean value of the dataset in cell
**G4**.

**Step 2: Calculate Standard Deviation of Dataset**

- Select cell
**G5**.

- Go to the
**Formulas**tab in the ribbon. - From the
**Function Library**, select**More Functions**. - In the
**More Functions**option, select**Statistical**.

- In the
**Statistical**section, scroll down and select the**STDEVPAÂ**function.

- A
**Function Arguments**dialog box will pop up. - In the Value1 section, select the range of cells
**C5**to**C12**. - Click on
**OK**.

- We will get the following standard deviation.

**Step 3: Calculate Z Score **

- Select cell
**D5**.

** **

- Go to the
**Formulas**tab in the ribbon. - From the
**Function Library**, select**More Functions**. - In the
**More Functions**option, select**Statistical**.

- In the
**Statistical**section, scroll down and select the**STANDARDIZEÂ**function.

- A
**Function Arguments**dialog box will pop up. - In the
**X**section, select cell**C5**.

- In the
**Mean**section, select cell**G4**which is the required mean value of this dataset. As we want to use this value for other calculations, we need to make it an absolute cell reference.

- In the
**Standard_dev**section, select cell**G5**which is the required standard deviation of this dataset. We have made this cell absolute by using the (**$**) sign. - Click on
**OK**.

- We get the following Z-score. See the screenshot.

- Use the
**Fill handle**tool for the remaining cells.

**Read More:** How to Calculate Critical Z Score in Excel

## Interpretation of Z Score in Excel

When we illustrate the Z-score, we need to identify how many standard deviations above or below the value are from the mean. The Z-score can be positive, negative or zero. A positive Z-score can be defined as a specific value that is above the mean value whereas a negative Z-score can be defined as a specific value that is below the mean value. When the Z-score is zero it is equal to the mean value.

- In our dataset, the mean value is
**6**and the standard deviation is**25**. If we consider the specific value e**306**, the Z-score for this value is**-0.23341.**Which means**306**has the standard deviation of**0.23341.**Which is below the mean or average value. - When the value is
**310**, we get the z-score as**12226**. That means that**310**has the standard deviation of**1226.**Which is above the mean value.

**Download Practice Workbook**

## Related Articles

- How to Calculate Altman Z Score in Excel
- How to Calculate Z-Score with 95 Confidence Interval in Excel
- How to Calculate P Value from Z Score in Excel
- How to Calculate Probability from Z-Score in Excel

**<< Go Back to Statistical Significance in Excel | Excel for StatisticsÂ |Â Learn Excel**