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In this video, the presenter demonstrates how to use the standardized function to calculate a z-score, also known as a normalized score. The process involves calculating the mean and standard deviation of the data first. The viewer is instructed to highlight the cell for the function, use the formulas tab, locate the standardized function, select the value to be converted, and proceed with the calculation. This method helps to convert raw scores in GPA to standardized scores for better analysis and comparison.