Solved on Mar 07, 2024
Find the critical value for a 3% significance level.
STEP 1
Assumptions
1. We are looking for the critical value .
2. This is a value from the standard normal distribution (Z-distribution).
3. The area to the right of the critical value is 0.03.
4. The area to the left of the critical value is since the total area under the standard normal curve is 1.
STEP 2
To find the critical value , we need to look up the value in a standard normal distribution table, use a calculator, or use statistical software that provides the Z-value corresponding to the cumulative area to the left of the critical value.
STEP 3
Since we are given the area to the right of the critical value (0.03), we need to find the area to the left of the critical value, which is .
STEP 4
Using the standard normal distribution table, calculator, or software, find the Z-value that corresponds to the cumulative area of 0.97.
STEP 5
The Z-value that corresponds to the cumulative area of 0.97 is the critical value .
STEP 6
Upon finding the Z-value, we can state the critical value .
The indicated critical value is approximately 1.88.
Was this helpful?