Syntax. STANDARDIZE(x,mean,standard_dev)
Definition. This function returns the standardized value of a distribution characterized by an average value and a standard variance.
Arguments
x (required). The value you want to standardize
mean (required). The arithmetic mean of the distribution
standard_dev (required). The standard deviation of the distribution
Background. In statistics, the standardization is the transformation of differently scaled number values in a consistent value range from 0 to 1 to compare distributed values.
The standard normal distribution is a type of continuous probability distribution. The special meaning of the normal distribution is based on the central limit theorem that states that a sum of n independent identical distributed random variables is normal distributed at the limit.
You will find more information about (standard) normal distributions in the description of NORM.DIST().
A standardized normal distribution has the mean 0 and the standard deviation 1. The STANDARDIZE() function returns the standardized value x of a normal distribution with a known mean and standard deviation. The equation for a standardized value is:
Example. You are a light bulb manufacturer and want to analyze the performance of light bulbs. You have already entered the measurements in an Excel table (see Figure 12-130).
You have also calculated the average life cycle and the associated standard deviation, as shown in Figure 12-131.
You use the STANDARDIZE() function to standardize all measured values. What arguments does this function require?
x = distribution values (measured performance)
mean = 2000 (F6)
standard_dev = 579 (G6)
Figure 12-132 shows the results.
Using the STANDARDIZE() function, you generated all standardized distribution values.