Question

Find the value of z Subscript alpha divided by 2 that corresponds to a confidence level of​ 89.48%.

Answer 1

Answer:

For this case we know that the confidence level is 89.48% or 0.8948 and the significance would be: $\alpha=1-0.8948 = 0.1052$ and the value of $\alpha/2 =0.0526$

Now we need to find a quantile in the normal standard distribution who accumulate 0.0526 of the area on each tail of the normal standard distribution and we got:

$z_{\alpha/2}= \pm 1.62015$

And we can use the following excel code for example:

"=NORM.INV(0.0526,0,1)"

Step-by-step explanation:

For this case we know that the confidence level is 89.48% or 0.8948 and the significance would be: $\alpha=1-0.8948 = 0.1052$ and the value of $\alpha/2 =0.0526$

Now we need to find a quantile in the normal standard distribution who accumulate 0.0526 of the area on each tail of the normal standard distribution and we got:

$z_{\alpha/2}= \pm 1.62015$

And we can use the following excel code for example:

"=NORM.INV(0.0526,0,1)"