What Is the Difference Between Critical Z & Calculated Z?

In many research reports, you may see two z-scores reported. One of these scores is the critical z-score and the other is the calculated z-score. These z-scores differ in their meaning and importance, yet are closely related. To understand the results of research and to do research yourself, you must know the difference between these two values.
  1. Calculated Z

    • Researchers performing statistical analysis are often interested how an individual data point fits into the hypothesized distribution of the population from which it comes. Calculated z-scores allow researchers to obtain a number representing where this datum fits in relation to the mean of the distribution; the calculated z-score for a datum is a standardization of that data point. The closer any z-score is to zero, the more it adheres to the hypothesized distribution.

    Calculation of Calculated Z

    • A data point's z-score comes straight from the calculations of the mean and standard deviation for a data sample. The formula for calculating a z-score is Z = (x -- m)/s, where "x" is the datum, "m" is the mean and "s" is the standard deviation. Thus, for any given data point, you can calculate the z-score needing only the mean and standard deviation of the sample.

    Critical Z

    • The critical z-score does not truly belong to a data set. Instead, the critical z plays the role in giving the researcher an idea of how extreme the data point for which the calculated z-score is in the sample. The critical z-score is on whole a benchmark to which the calculated z-score is compared. If the calculated z-score surpasses the critical z-score, it is said that the datum is an extreme value, differing greatly from the mean of the data.

    Calculation of Critical Z

    • The critical z-score's calculation is less of a calculation and more of a reference algorithm. To find a critical z, you need to decide on a alpha value. The alpha value, a number between 0 and 1, represents how the researcher conceptualizes the "tails," or areas at the extreme edge, of a distribution. The most common alpha value is 0.05, representing the tails as being those outer edges of a distribution that contains 5 percent of the values. After deciding on an alpha value, the researcher can use a Z-table to look up the corresponding critical z-score. That is, the critical z-score is entirely determined by the alpha value.

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