Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

Ready to get started?

What are Z-scores and How are they Calculated?

What are Z-scores and How are they Calculated?

Abdulla Javeri

30 years: Financial markets trader

Standard normal curves and Z-scores are concepts that are often covered at school or college. Abdulla provides a refresher on the subject by outlining an example of a standard normal curve and identifying some useful excel functions to calculate a Z-score.

Standard normal curves and Z-scores are concepts that are often covered at school or college. Abdulla provides a refresher on the subject by outlining an example of a standard normal curve and identifying some useful excel functions to calculate a Z-score.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

What are Z-scores and How are they Calculated?

4 mins 49 secs

Key learning objectives:

  • Define z-score

  • Learn how to calculate z-scores

Overview:

Z-scores are a crucial aspect of understanding probability distributions. The z-score can be defined as the distance from the mean as measured in standard deviations.

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Summary

What are z-scores?

One thing they all have in common though is that the area of the curve that lies between two equidistant points from the mean is identical. Approximately 68% of the area under the curve lies between -1 and +1 standard deviations, and about 95.00% between -2 and +2 standard deviations.

Given that there are an infinite number of curves and they all have the same characteristics, we can represent all those curves using just one curve, the standard normal curve. In the standard normal curve the x axis scale is in standard deviations. We can look up probabilities in terms of how many standard deviations any chosen point is away from the mean. The mean is zero because the distance of the mean from the mean is zero. The distance from the mean as measured in standard deviations is the z-score.

How are z-scores represented on the curve?

Here’s a standard normal curve. As we can see, the scale is in z-scores or standard deviations. For any point x we have to determine its z-score. It’s simply x minus the mean divided by the standard deviation. From there we can look up the area of the curve to the left of that point.

How do we calculate z-scores?

Example 1 - Assume the following:

  • Mean = 500
  • Standard deviation = 40
  • X = 520

z= (520-500)/40 = 0.5

Example 2 - Assume the following:

  • Mean = 500
  • Standard deviation = 40
  • X = 480

z= (480-500)/40 = -0.5

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

There are no available Videos from "Abdulla Javeri"