Examples of z Critical Value

Example 1

Calculate the z critical value with the help of the given significance level.

Significance level = 0.06

Solution

Step 1: First of all, calculate half of the given significance level (α)

α/2 = 0.06/2 = 0.03

Step 2: Now subtract the above value from 1.

1 - α/2 = 1 – 0.03 = 0.97

Step 3: Now take a z distribution table and search the above value in the table.

Step 4: After indicating the value on the z distribution table, take its corresponding degree of freedom and significance level and add them.

Df = 1.8

Significance level = 0.08

z critical value = 1.8 + 0.08

z critical value = 1.88