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Coding simplifies awkward numbers by transforming the data with . You then find the mean and standard deviation of the easy coded values and reverse the coding to recover the originals.
What you'll be able to do
Coding replaces each value with — subtracting then dividing by to get smaller, friendlier numbers to work with.
The mean codes exactly like a data value: find , then reverse the transformation to get .
Standard deviation is affected by the only, not the shift — subtracting doesn’t change spread, but dividing by does. So multiply the coded standard deviation by .
Tip — Adding/subtracting shifts data (mean changes, spread doesn’t); multiplying/dividing scales both.
Formula recap
Common mistakes to avoid
Key takeaways
Test yourself
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