1) Derived scores help interpret raw scores and make them comparable by expressing them in terms of standard deviations from the mean.
2) There are two main types of derived scores - standard scores (z-scores) which indicate how many standard deviations a score is from the mean, and percentile ranks which show the percentage of scores in the group that are the same or lower.
3) Z-scores are calculated using the formula z = (x - M) / SD, where x is the raw score, M is the mean, and SD is the standard deviation. This expresses how many standard deviations a score is from the mean.