23

STATISTICS AND PROBABILITY

(Notes No. 5: FINALS)

UNDERSTANDING Z-SCORES

1. The z-score is a measure of relative standing.

Measures of relative standing is a way to describe the relationship between specific values in a
data set with the rest of the values in the set. It is a way to compare values coming from different
data sets with each other.
2. The z-score is a standard deviation value. It is the distance between a given value X and the Mean.
3. Sometimes it is called a standard value.
4. The areas under the Normal Curve are given in terms of z-values or scores.
5. The z-scores locates x within a sample or within a population.
The formula for calculating the value of Z:
x−μ
1. z= ( z – scores for population)
σ
x−x
2. z= ( z – scores for sample data)
s

Where: x = given measurement (raw scores)

μ = population Mean
σ = population Standard Deviation
x = sample Mean
s = sample Standard Deviation
Importance of z-scores
1. Raw scores may be composed of large values. These large values cannot be accommodated at
the base line of the Normal curve, so they have to be converted or transformed into standard
form for convenience to be meaningful and will not lose meanings associated with the raw
scores.
2. For any population, the mean and standard deviation are fixed. Thus, the z formula matches the
z-values one-to-one with the x-values (raw scores). That is, for every x value, there corresponds
a z-value and for each z-value there is exactly one x-value.

3. The z-values are matched with specific areas under the Normal Curve in a Normal Distribution
Table. Therefore, if you wish to find the percentage associated with x, you must find its matched
value using the z-formula. The z-values are matched with specific areas under the normal curve
in a Normal Distribution Table, and these areas represents probability, and that probability gives
the desired percentage or proportion associated with x.
Examples:
No. 1. In a population of reading scores, the mean μ = 68, and the standard deviation σ = 5.
Find the z value that corresponds to a score x = 73.
STEPS
1. Check the given values. μ = 68, σ = 5, x = 73

2. Solve for z score by substituting the given values in the computing formula.
73−68 5
z= = =1
5 5
Therefore, the raw score 73 corresponds to z = 1. It is located in one standard deviation (1 σ ).
Since z = 1 is positive, the score 73 is to the right of the mean ( or above the mean).
We can also say that the score 73 is above average.
 24

Number 2. A population score in reading is 58. Find the z value that corresponds to a score of
58 if the population mean is 50 and the standard deviation is 4.
STEPS
1. Check the given values.
μ = 50, σ = 4, x = 58
2. Substitute the given values in the computing formula.
58−50 8
z= = =2
4 4
Therefore, the raw score 58 corresponds to z = 2. It is located in two standard deviation (2 σ ).
Since z = 2 is positive, the score 58 is to the right of the mean ( or above the mean).
We can also say that the score 58 is above average.

Number 3. A mathematics score is 74. If it is given that μ = 80 and σ = 6, what is the

corresponding z value?
STEPS
1. Check the given values.
μ = 80, σ = 6, x = 74
2. Substitute the given values in the computing formula.
74−80 −6
z= = =−1
6 6
Therefore, the raw score 74 corresponds to z = -1. It is located in −1 σ , but since it is negative,
the score 74 is on the left of the mean.
The score 74 is below the mean.
We can also say that the score 74 is below average.

Number 4. Consider the normal distribution in IQ’s with mean μ of 100 and a standard
deviation of 16. What percentage of IQ’s are:

a. greater than 92?

b. between 92 and 120?

c. less than 120?

Solutions

a. greater than 92?

Solving for z-value of 92
92−100
Z= = - 0.5 Z(-0.5) = 0.1915 Since Z (- 0.5) is on the left of the mean (center)
16
and since we are going to find the area greater than 92 (which is equivalent to Z (- 0.5), we will
include the whole area to the right of the mean. This area is from Z = 0 going to the right and is
equal to 50% or 0.5000
 25

P=Z−0.5 +0.5000=0.1915+ 0.5000=0.6915

Therefore, based on the problem, the percentage of IQ’s greater than 92 is 69.15%

b. between 92 and 120?

92−100 120−100
Z 92= =−0.5 Z120 = =1.25
16 16
Z(-0.5) = 0.1915 Z(1.25) = 0.3944

P=0.1915+0.3944=0.5755

Therefore the percentage of IQ’s between 92 and 120 is 57.55%

c. less than120
120−100
Z¿ =1.25 The area from z = 0 going to the left = 50% = 0.5000
16
Z(1.25) = 0.3944

P=0.5000+0.3944=0.8944
Therefore the percentage of IQ’s less than 120 is 89.44 %
 26

Number 5. DG Company has 100 branches nationwide. The annual profit of the company is
normally distributed with a mean of P73,000,000 a year with a standard deviation of
P3,250,000. How many branches have a profit of P73,000,000 to P80,000,000?

GIVEN:
1. n = 100
2. Mean ( μ) = 73,000,000
3. Standard Deviation (σ ) = 3,250,000
4. x = 80,000,000

FIND THE Z - SCORE

X−μ 80,000,000−73,000,000
Z¿ = =2.15 Using the z-table, determine the area from z=0 to z=2.15
σ 3,250,000

ANSWER: Z (2.15) = 0.4842

To find the number of branches having a profit of P73,000,000 to P80,000,000, multiply the obtained
area to the number or branches n.

(0.4842)(100) = 48.42 Round off the answer to whole number. Answer: 48

Therefore, 48 branches (Probability of 48.42% of 100 branches) have a profit of P73,000,000 to

P80,000,000.

Number 6. From example number 4, determine the number of branches with a profit of
P79,600,000 and higher, assuming that the standard deviation is P6,000,000. Use
the same value for mean.

GIVEN:
1. n = 100
2. Mean ( μ) = 73,000,000
3. Standard Deviation (σ ) = 6,000,000
4. x = 79,600,000

FIND THE Z - SCORE

X−μ 79,600,000−73,000,000
Z¿ = =1.1
σ 6,000,000

Using the z-table, determine the area from z=0 to z = 1.1 ANSWER: Z (1.1) = 0.3643

Since the required profit is P79,600,000 and higher, the shaded area of the normal curve must be from
1.1 and going to the right. We must subtract 0.3643 from 0.5000 (one half of the whole normal curve.)

0.5000 – 0.3643 = 0.1357, multiply 0.1357 by 100 = 13.57 = 14

Therefore, there are 14 branches (Probability of 13.57%) have a profit of P79,600,000 and higher.

Number 7. From example number 4, determine the number of branches with a profit of less than
or equal to P80,500,000 if the standard deviation is P5,000,000. Use the same value for
mean.

GIVEN:
1. n = 100
 27

2. Mean ( μ) = 73,000,000
3. Standard Deviation (σ ) = 5,000,000
4. x = 80,500,000

FIND THE Z - SCORE

X−μ 80,500,000−73,000,000
Z¿ = =1.5
σ 5,000,000

Using the z-table, determine the area from z=0 to z=1.5. ANSWER: Z(1.5) = 0.4332

Since the required profit is less than or equal to P80,500,000, the area is from 1.5 to 0 to the whole left
side of the normal curve. Therefore, we must add the left side of the curve (50% or 0.5000 to the z-value
of 1.5 which is equal to ) 0.4332.

0.5000 + 0.4332 = 0.9332. Multiply 0.9332 by 100: (0.9332)(100) = 93.32 = 93

Therefore, 93 of the 100 branches have a profit of P80,500,000 or less.

Take home activity:

All sections of Grade 11 at a certain university were given the same exam.
Test were distributed randomly with a mean of 72 and a standard deviation of 8.

a) What percentage of students scored between 60 and 69 and considered as “less than satisfactory”
performance?
b) What percentage of students scored between 70 and 79 and considered as “satisfactory”
performance?
c) What percentage of students scored 80 and above and considered as “very satisfactory”
performance?
d) What percentage of students scored below 60 and considered as “not satisfactory performance?

Sources: 1. Conceptual Math and Beyond Statistics and Probability

By: Jose M. Ocampo, Jr. Ph.D. and Wilmer G. Marquez, M.A.
2. Statistics & Probability for Senior High Schools
By: Christian Paul O. Chan Shio and Maria Angeli T. Reyes
3. Statistics and Probability
By: Rene R. Belecina, Elisa S. Baccay and Efren B. Mateo
4. Elementary Statistics with computer applications by: Altares, et.al.