How is the number of standard deviations a value is from the mean calculated?

The calculation of how many standard deviations a value is from the mean is determined by finding the difference between the value and the mean. Specifically, this is expressed as "value - mean." This difference indicates how far away the value lies from the average (mean) in a specific data set.

In statistical terms, once this difference is calculated, it can be divided by the standard deviation of the dataset to ascertain how many standard deviations away from the mean the value is located. This concept is central to understanding z-scores, which quantify the position of a data point in relation to the overall distribution.

A correct understanding of this calculation is essential in sustainability accounting, as it allows practitioners to assess performance metrics or sustainability indicators against average benchmarks, thereby facilitating better decision-making based on relative performance compared to the mean.