The Excel formula for this calculation is: X_standardized = (X – mean of range) / standart deviation of the range The formula to standardize the value X is Let’s say, we again have a list of values ranging from y to z and it begins with a number X. The calculation of standardization is quite easy. This operation is also called getting Z-scores or Mean Centering: While normalization transforms the original values to fit within a certain range, standardization transforms them to fit within a distribution that has a mean of 0 and standard deviation of 1. We can normalize a list of values via the calculation above, however, if we want to standardize values, Excel has also its own formula to calculate it, called Standardize. Normalization and standardization are concepts that are often confused with each other. What’s the difference between Normalization and Standardization? This is how the list will basically become after the normalization calculation:
Hence, at the end, we get a simpler range of data that is easier to read and understand. To establish the formula, let’s say the list begins with a number X.Īfter establishing the formula for the first value X, we can duplicate it for the other cells to normalize all values in the list. We want to simplify this list by making it range differently such as ranging from a to b. Let’s say we have a list of values ranging from y to z. Normalized data is the data transformed to fit within a certain range which is usually simpler. Now that you’ve normalized the data, you can clearly see that gardener Jack is much better! What Is Normalized Data? Instead of counting the total number of roses, let’s compare both gardeners with a fair standard – how many roses did they each grow per branch? Just “normalize” the data to get a more fair way of comparing these two. But think like that: what if Mary had to plant 25 roses branches to get that harvest? If you just compare 80 roses of Jack and 100 roses of Mary, it does seem like Mary is the better gardener. One of them Jack says, “I have only 5 roses branches but this year I picked 30 roses!” and the other one Mary replies, “You are not good at this, I picked 100 roses this month!” They want to find out who is better at getting more roses to grow in their garden. Imagine two flower-seller who grow rose in their rose garden.
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