Question

If a confidence level of 98% is being used to construct a confidence interval, then what would be the value of alpha? Answer in decimal form.

Please write out formula clear, and the correct answer is 0.0200

Answer 1

Formula connecting Confidence Level and Significance level (alpha0:

    Confidence Level = 1 - alpha,                       (1)

where alpha () is known as Significance Level.

Given:

Confidence Level = 98% = 0.9800

Substituting in equation (1), we get:

0.9800 = 1 - alpha                           (2)

From equation (2), we get:

alpha = 1 - 0.9800

         = 0.0200

So,

Correct answer is:

0.0200