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It is likely the display of the value and not the value itself that is rounding. Try this:
In the Measures window, right click your calculated field "Z" and select "Field Properties" --> "Number Format". Then select Number (custom) and set the number of decimal places you'd like to see.
Please let me know if that doesn't work.
Another option is to do this within the calculation itself. Add the round function to your formula to look similar to the following:
Joshua, Tracy - I was trying with 2 decimals in Round and Number Format setting. Now it is working with 3 decimals. Thanks a lot for quick help.