Question

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

Answer 1

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`

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`