Z-Scores and Modified Z-Scores
Z-score is a statistical measurement of a number in relationship to the mean of the group of numbers. It refers to points along the base of the standardized normal curve. The center point of the curve has a z-value of 0. The distance from the mean is measured by standard deviations. StrayDot generates a report with a list of all vendors and highlights the outliers.
How to use it ?
StrayDot flags all transactions with a z-score above 2.5 and 3.0 or higher indicating the payment is more than 2.5 standard deviations above the mean. Results from a modified version of Z Score test are also shown to help spot the outliers more effectively.