Summary: Anyone with even an elementary [understanding of statistics](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/supercharged-statistics-03-30-2017) has most likely heard the term “Z-Score” at one point or another. When it comes to something as [universal and ubiquitous as the Normal Distribution](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/from-theory-to-practice-04-05-2016), Z-Score analysis is inextricably linked to this distribution and all of its properties. Specifically, a Z-Score measure captures the distance that a certain observation might be from the average, or mean, of the distribution. As traders who are constantly [monitoring the ranges and standard deviations](https://www.tastytrade.com/tt/shows/from-theory-to-practice/episodes/expected-move-differentials-05-31-2017) surrounding a given stock price, the importance of a Z-Score cannot be denied.
