Final answer:
To determine the critical value zα/2 that corresponds to a given level of confidence, divide the remaining probability equally between the two tails of the distribution. For a two-sided 94% confidence interval, each tail should contain an area of 3%. The critical value zα/2 is approximately -1.8808.
Step-by-step explanation:
To determine the critical value zα/2 that corresponds to a given level of confidence, we need to find the z-score that represents the area in each tail of the distribution.
For a two-sided 94% confidence interval, we divide the remaining probability (100% - 94% = 6%) equally between the two tails, so each tail should contain an area of 3%.
To find the z-score at the 3% mark in the standard normal distribution, we can consult a z-score table or use a calculator. The critical value zα/2 is the negative z-score that corresponds to a cumulative probability of 0.03, which is approximately -1.8808.