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In this video, the tutorial demonstrates how to use the standardized function to calculate a normalized or standard score, also known as a z-score. It explains that to use this function, mean and standard deviation values for the sample data must be calculated first. The process involves highlighting the cell for the function, accessing the standardized function through the formulas tab, and selecting the value to be converted to a standard score. The tutorial emphasizes the importance of having the mean and standard deviation values readily available for accurate calculations.