When a doctor suspects that a patient has diabetes, they recommend having the patient's blood glucose level measured—that is, the concentration of sugar in the blood. Statistical studies show that a healthy person's normal blood glucose level lies between 0.7 and 1.1 grams per liter (g/L), defining what is known as the corresponding reference interval, here [0.7, 1.1]. If the result falls outside this interval, it may be considered "pathological," depending on the patient's profile. To construct this interval for a biological parameter X, such as blood glucose level, the parameter is measured in a sample of subjects presumed to be healthy, under the assumption that the variable follows a normal distribution with mean μ and variance σ2 (see box).
We then check whether the observed value X = x0 lies in the reference interval, which contains 95% of the values in the population in question. For a normal distribution, this interval is known to be bounded by μ – 1.96σ and μ + 1.96σ. In practice, the population parameters μ and σ are generally unknown. They are therefore estimated using the observed mean m and observed standard deviation s of a sample of people presumed to be healthy (with a sample size considered "sufficiently large"). Thus, the reference interval actually used in practice is
[m– 1.96s, m+ 1.96s].
The Z-score
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Another way to measure how far an observation lies from a statistic computed from the data, or from a theoretical model (a probability distribution), is to use the observation's Z-score. Suppose we have a dataset with observed mean m and observed standard deviation s, or, in the theoretical case, a probability distribution with mean m and standard deviation s. Let x0 be a particular observation. We can standardize this observation by expressing it as a "deviation from the mean in standard-deviation units": this measures the signed distance d(X) between this observation and the others in the empirical case, or between this observation and a model in the theoretical case. This distance is the quantity z0 = (x0 – m) / s when comparing the observation with a statistic, or z0 = (x0 – m) / s when comparing it with a theoretical probability distribution (the notation z is conventionally associated with standardized variables). This quantity is called the Z-score.