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Do one of the following, as appropriate: (a) Find the critical value zα/2, (b) find the critical value tα/2, (c) state that neither the normal nor the t distribution applies. 98%; n = 7; σ = 27; population appears to be normally distributed. zα/2 = 2.05 tα/2 = 1.96 tα/2 = 2.575 zα/2 = 2.33
Solution:
Given ,
c = 98%
n = 7
σ = 27
Since the population standard deviation σ is known , we use z distribution.
Here , c = 98% = 0.98
= 1 - c = 1 - 0.98 = 0.02
/2 = 0.02/2 = 0.01
1 - (/2) = 0.9900
Using z table , see where is 0.9900 probability and see the corresponding z value .
So , = 2.33
Answer : = 2.33
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