Question

After doing a standardized scoring, how do I rank my score values. The data is about 338 companies. I working with economic value and relationship value. My EV average score is 1.97 and my RV is 0.61.

Answer 1

Since , given data is about 338 which is quiet large .

Therefore, these scores and values must follow Normal Distribution .

and means are already obtained then ,

In standardizing values we subtract the random variable with mean and then divide it by standard deviation.

$i.e. , Z = \frac{x - \mu}{\sigma}$ ;

Now, we should use "Standard Normal Table" for ranking scores based on chances or probabilities .

in standard normal table there are two directions lines ; one is running down (column) and other one is running along (row) .

Let us take an instance for reading "Standard Normal Table" :

We assume a standardize value "0.45" then, for finding probabilities of it

we just go through line running down with taking "0.4"

and then go through line running along with taking "0.05"

after that we can see  the intersecting area of both row and column and that value (0.1736) is our probability .

We can also convert them into percent by multiplying with 100 (i.e. 17.36%)