Question

Find the critical value zα/2 that corresponds to a 98% confidence level.

Answer 1

A critical value is the point on the scale of the test statistic (z test in this case) outside which we reject the null hypothesis, and is taken from the level of significance of the test. The critical values can be obtained from the standard distribution tables for z and for this case, it is equivalent to:

critical value zα/2 at 98% confidence level = 2.326

Answer: 2.326