Question

In: Statistics and Probability

Find the critical value z Subscript c necessary to form a confidence interval at the level...

Find the critical value z Subscript c necessary to form a confidence interval at the level of confidence shown below. zc= 0.87

Solutions

Expert Solution

Answer:

Given Data

The level of significance is obtained below :

Here , confidence level is 0.87 ,

The level of significance is 0.935

Explanation

The level of significance is obtained by dividing the c with 2 , and subtracting from 1.

The critical value for 0.87 level of confidence is obtained below :

The value is obtained below:

That is ,

Procedure for finding the z - value is listed below :

  1. From the table of standard normal distribution ,locate the probability value of 0.935.
  2. Move left until the first column is reached . Note the value as 1.5.
  3. Move upward until the top row is reached . Note the value as 0.01.
  4. The intersection of the row and column values gives the area to the two tail of z.

That is ,

The critical value for 0.87 level of confidence is 1.51

Explanation

Locate the probability of 0.935 in the standard normal table and identify the corresponding row and column values to obtain the critical value for 0.87 level of confidence .

The critical value for 0.87 level of confidence is 1.51.

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