The critical z value of α/2 is determined as 2.05. (Opton B).
How to calculate the critical value?
The critical value of the standard normal distribution corresponding to the upper tail probability α/2 is calculated by applying the following method.
The given critical value;
, for α = 0.04
The expression of the critical value of simplified as;
α/2 = 0.04 /2
= 0.02
Using a standard normal distribution table, the right tailed value of the critical value 0.02 is calculated as;
The area under the curve is;
= 1 - α → 1 - 0.02
= 0.98
The critical z value is 2.05