QuestionFind the critical value necessary to form a confidence interval at the level of confidence shown below. (Round to two decimal places as needed.)
Studdy Solution
STEP 1
1. The confidence level .
2. The critical value is based on the standard normal distribution.
3. The critical value corresponds to the tails of the distribution that are not covered by the confidence level.
STEP 2
1. Determine the area in each tail of the standard normal distribution.
2. Find the critical value using the standard normal distribution table or a calculator.
STEP 3
Calculate the total area in both tails of the distribution. Since the confidence level , the area not covered by the confidence interval is:
STEP 4
Divide the area equally between the two tails:
Each tail has an area of .
STEP 5
Find the critical value such that the cumulative area to the left is .
Using a standard normal distribution table or calculator, find such that:
STEP 6
The critical value corresponding to a cumulative probability of is approximately:
(Rounded to two decimal places)
The critical value is:
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