Question

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

A) 2.33
B) 2.575
C) 1.75
D) 2.05

Answer 1

The critical value zα/₂ that corresponds to a 98% confidence level is approximately 2.33.

Step-by-step explanation:

To find the critical value zα/₂ that corresponds to a 98% confidence level, we need to look up the z-score in the standard normal probability distribution. The area to the right of zα/₂ is equal to (1 - 0.98)/2 = 0.01. Using a calculator or a standard normal probability table, we can find that the z-score corresponding to an area of 0.01 is approximately 2.33. Therefore, the correct answer is A) 2.33.