Question

What z values would I use for a: a1) 80% confidence level a2) 85 % confidence...

What z values would I use for a:

a1) 80% confidence level

a2) 85 % confidence level

a3) 90% confidence level

a4) 95% confidence level

a5) 98% confidence level

a6) 99% confidence le

Homework Answers

Answer #1

The Z-scores are calculated using excel formula for normal distribution

a1) 80% confidence level

At 80% confidence level the formula used is =NORM.S.INV(0.90) which results in Zc= 1.28

a2) 85 % confidence level

At 85% confidence level the formula used is =NORM.S.INV(0.925) which results in Zc= 1.44

a3) 90% confidence level

At 90% confidence level the formula used is =NORM.S.INV(0.95) which results in Zc= 1.645

a4) 95% confidence level

At 95% confidence level the formula used is =NORM.S.INV(0.975) which results in Zc= 1.96

a5) 98% confidence level

At 98% confidence level the formula used is =NORM.S.INV(0.99) which results in Zc= 2.33

a6) 99% confidence level

At 99% confidence level the formula used is =NORM.S.INV(0.995) which results in Zc= 2.58

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