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In this video tutorial, the speaker demonstrates how to use the standardized function to calculate normalized or standard scores, also known as z-scores. The process involves converting raw GPA scores into standardized scores by calculating the mean and standard deviation of the sample data first. The viewer is guided on how to find and apply the standardized function within Excel, with X representing the value to be converted. This involves highlighting the cell, accessing the formulas tab, and inserting the function to obtain standardized scores.