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Learn about the z-score (number of standard deviations) and how to calculate it and use it in the Empirical Rule and Chebyshev's Theorem.
Topics:
1. (00:00) Introduction to Z-Score
2. (01:23) Basics of Z-Score Calculations using math formula or STANDARDIZE function.
3. (03:16) Range for z-scores is usually -3 to 3. And Z-score of zero means value is equal to mean.
4. (03:58) Spilled Array Formula to calculate z-scores for entire data set
5. (04:50) Histogram with a Bell Curve or Symmetrical Distribution: look at where z-scores fall
6. (06:05) Distributions that tend to have a bell shape
7. (06:35) Understanding Empirical Rule
8. (08:10) Outliers that are past + / - 3 standard deviations
9. (08:36) Finance Field’s mis-use of the empirical rule.
10. (09:52) Empirical Rule to make probability distribution statements. See multiple examples of formulas and calculations to calculate the upper and lower limits for a probability interval.
11. (11:39) Gas Price Empirical Rule example
12. (14:01) Manufacturing Filling Machine example for cereal boxes
13. (15:02) First attempt at calculating Empirical Rule Probabilities based on a Chart Visual.
14. (15:42) When you can use Empirical Rule.
15. (16:04) Integral Calculus reference for calculating area under the curve
16. (19:23) Chebyshev’s Theorem
17. (22:26) Compare Empirical Rule and Chebyshev’s Theorem
18. (23:21) Summary
19. (23:47) Closing and Video Links