Suppose Z is a standard normal random variable. Find the value of z subscript italic alpha divided by 2 end subscript such that P (minus z subscript alpha divided by 2 end subscript less than Z less than space z subscript alpha divided by 2 end subscript )equals 0.95

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Answer:

The result for this case would be [tex] z_{\alpha/2} =1.96[/tex]

And we can verify that:

[tex] P(-1.96 <Z< 1.96) = 0.95[/tex]

Step-by-step explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".  

Solution to the problem

For this case we need to satisfy the following condition:

[tex] P(-z_{\alpha/2} < Z < z_{\alpha/2}) = 0.95[/tex]

Since the normal standard distribution is symmetric and the total area below the curve is 1 since we have a probability distribution, we can rewrite this expression like this

[tex] P(-z_{\alpha/2} < Z < z_{\alpha/2}) = 1-2P(Z<-z_{\alpha/2}) = 0.95[/tex]

So we can rewrite the last expression like this:

[tex] P(Z< -z_{\alpha/2}) = \frac{1-0.95}{2}= 0.025[/tex]

And we need to see on the normal standard distribution which value accumulates 0.025 of the area on the left tail. We can use the following excel code for example:

"=NORM.INV(0.025,0,1)"

And the result for this case would be [tex] z_{\alpha/2} =1.96[/tex]

And we can verify that:

[tex] P(-1.96 <Z< 1.96) = 0.95[/tex]

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