How to find extreme values? 1) P(z<z*)=0.05 2) P(z>z*)=0.025 3) find the "most extreme 5%" by...
How to find extreme values?
1) P(z<z*)=0.05
2) P(z>z*)=0.025
3) find the "most extreme 5%" by separating it from the middle 95%.
Homework Answers
1)
P(Z < z*) = 0.05
From Z table, z-score for the probability of 0.05 is -1.645
z* = -1.64
2 )
P(Z > z*) = 0.025
P(Z < z*) = 1 - 0.025
P(Z < z*) = 0.975
From Z table, z-score for the probability of 0.975 is 1.96
z* = 1.96
3)
We have to calculate z * such that P(-z* < Z < z*) = 0.95
P(-z* < Z < z*) = 0.95
P(Z < z*) - P(Z < -z*) = 0.95
P(Z < z*) - ( 1 - P(Z < z*) ) = 0.95
P(Z < z*) - 1 + P(Z < z*) = 0.95
2 P(Z < z*) = 1.95
P(Z < z*) = 0.975
From Z table, z-score for the probability of 0.975 is 1.96
z* = 1.96
( Two extreme values are -z* = -1.96 and z* = 1.96)
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How to find extreme values?
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