81. The Standard Normal Distribution.

Hey let’s talk about standardization. Every distribution can be standardized say the mean and the variance of a variable are MU and sigma squared respectively. Standardization is the process of transforming this variable to one with a mean zero and a standard deviation of one this simple formula allows us to do that. OK. Logically a normal distribution can also be standardized. The result is called a standard normal distribution. In the last section we explored shifts in the mean and the standard deviation. So if we shift the mean by new and the standard deviation by Sigma for any normal distribution we will arrive at the standard normal distribution great. We use the letter Z to denote it as said previously. It does mean is 0 and it’s standard deviation 1. The standardized variable is called the Z score and is equal to the original variable minus its mean divided by its standard deviation. Let'