Question

Determine the critical value LaTeX: z_{\frac{\alpha}{2}}z α 2 that corresponds to a 96% level of confidence.

Answer 1

Answer:

The confidence level for this case is 96% or 0.96, then the significance level would be:

$\alpha = 1-0.96 =0.04$

And then $\alpha/2 =0.02$. We need to find a critical value who accumulates 0.02 of the area on each tail and we got:

$z_{\alpha/2}=\pm 2.054$

Step-by-step explanation:

The confidence level for this case is 96% or 0.96, then the significance level would be:

$\alpha = 1-0.96 =0.04$

And then $\alpha/2 =0.02$. We need to find a critical value who accumulates 0.02 of the area on each tail and we got:

$z_{\alpha/2}=\pm 2.054$