z-score

Definition

An indicator used in data analysis which measures how far a given data point is from the mean of the data. Z-scores are often used to analyze credit, and will give an estimation of the probability of going bankrupt.

Use z-score in a sentence

You should try to have as good of a z-score as you can so that you know your business is doing well.

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The z-score was the indicator that I was looking for and I was ready and willing to measure and spend my day doing some boring stuff.

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They had the couples credit scores, and pointed out their z-score was of concern. Unfortunately the analysis showed their loan would be very risky to the bank.

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