4) Calculating a Z-Score in Excel.

This Blog entry is from the Basic Statistics section in Learn Palisade.

The measure of how many standard deviations from the mean a value may be, would be calculated via the following formula:

= (Test Value – Mean) / Standard Deviation.

The values Mean and Standard Deviation would be taken from the StatTools output.   The Mean value is contained in cell B9 and the Standard Deviation is Contained in the cell B11.

Start by selecting any cell in the output, in this case D9, then type the formula:

= (1.0000 – B9) / B11

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The hardcoded value of 1.0000 would be the prevailing price and thus a variable.  It would therefore be possible to replace the value 1.0000 with a cell reference, a technique that will be used extensively in the abstraction process, especially in creating Behavioral Analytics and Abstraction Deviations.