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Standardization (Z-score Normalization) The general method of calculation is to determine the distribution mean and standard deviation for each feature. Next we subtract the mean from each feature. Then we divide the values (mean is already subtracted) of each feature by its standard deviation.
Subtract mean and divide by standard deviation: Center the data and change the units to standard deviations. Subtract mean: Center the data. Divide by standard deviation: Standardize the scale for each variable that you specify, so that you can compare them on a similar scale.
Subtract the mean,, from the value you want to convert, X. Divide the result from Step 1 by the standard deviation,.
Subtract mean and divide by standard deviation: Center the data and change the units to standard deviations. Subtract mean: Center the data. Divide by standard deviation: Standardize the scale for each variable that you specify, so that you can compare them on a similar scale.
We subtract off the mean of X, which is, and divide through by the standard deviation of X, which is n, to obtain a standardized version of the sample mean: X/n.
When you standardize a random variable, its mean becomes zero and its standard deviation becomes one. Therefore, if the Z score of x is zero, then the value of x is equal to the mean. If the Z score of x is one, then the value of x is one standard deviation above the mean.
In the business world, “normalization” typically means that the range of values are “normalized to be from 0.0 to 1.0”. “Standardization” typically means that the range of values are “standardized” to measure how many standard deviations the value is from its mean. However, not everyone would agree with that.
The terms normalization and standardization are sometimes used interchangeably, but they usually refer to different things. Normalization usually means to scale a variable to have a value between 0 and 1, while standardization transforms data to have a mean of zero and a standard deviation of 1.
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