Help: Calculating the Z-Score CFAI Material Reading 10
Good morning, everyone.
I'm having trouble understanding the Z-Score test statistic.
In the reading, a few examples, and the equation for calculating the Z-Score are shown as follows:
Z = (Sample Mean - Population Mean) / Standard Deviation
but there is another equation as follows:
Z = (Sample Mean - Population Mean) / Standard Error
What is the difference between the two equations? In what scenario is each used? If someone could help elabrote I would appreciate it.
Thanks so much,
Sean |