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This video tutorial explains Z-scores and standardization, focusing on the standard normal distribution with a mean of 0 and a standard deviation of 1. Z-score indicates how many standard deviations an observation is from the mean. Understanding Z-scores helps in calculating exact proportions using the standard normal distribution. Each number on the horizontal axis corresponds to a Z-score, and it allows us to determine the area associated with a specific Z-score. This knowledge can be used to find exact areas using Z-scores.