Not fully understanding gaussian-laplace table

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I have this exercise where enter image description here is the answer. Using this annex(text at the top means tenths of the x), enter image description herethe value becomes enter image description here . What I don't understand is how it becomes 2,58. Our first answer is 0,495, so I'm looking on the left searching the 0,4 table. After that, I'm looking at the tenths of our answer, but there is no number equivalent to 2,58. Is the exercise wrong or am I not understanding the annex right?

Best Answer

Note to readers: On this forum, $\Phi(x)$ usually denotes the cumulative distribution function of the standard normal random variable, and thus $\Phi(x) = \Phi_{\text{CDF}}(x) = \int_{-\infty}^x \frac{1}{\sqrt{2\pi}}e^{-x^2/2} \mathrm dx$, which takes on values increasing from $0$ at $-\infty$ to $1$ at $\infty$ as $x$ increases from $-\infty$ to $\infty$. In contrast, the OP's notation uses $\Phi(x)$ (I will call it $\Phi_{\text{OP}}(x))$ to mean $\int_0^x \frac{1}{\sqrt{2\pi}}e^{-x^2/2} \mathrm dx$, which takes on values increasing from $0$ at $x=0$ to $0.5$ at $x=\infty$ as $x$ increases from $0$ to $\infty$. Thus, $\Phi_{\text{CDF}}(x) = 0.5+ \Phi_{\text{OP}}(x)$, The table shows the values of $\Phi_{\text{OP}}(x)$.

You need to find the value of $x$ for which the "table entry" is $0.4950$. Unfortunately, there is no such entry; the closest that we can come is $x=2.57$ for which the table entry is $0.4949$ or $x=2.58$ for which the table entry is $0.4951$. What is really needed is the smallest value of $x$ for which we are guaranteed that the "table entry" is $0.495$ or larger. By the way, that's an exact number, no round-off etc: if you write the number as a decimal, all the digits after that $5$ are 0; $0.495000000000000\cdots$. Now, since $x=2.58$ clearly satisfies the desired criterion $(0.4951 > 0.495)$, we choose that value as the answer.

An alternative would be to do linear interpolation and say that $x=2.575$, midway between $x=2.57$ and $x=2.58$, is the right answer, but this would be incorrect. The value of $x$ at which $\Phi_{\text{CDF}}(x) = 0.9950$, which value of $x$ is denoted by $x_{0.9950}$, is just a little smaller than $2.58$. According to the tables on pages 968-871 of Abramowitz and Stegun, Handbook of Mathematical Functions, $\Phi_{\text{CDF}}(2.58) = 0.9950599642\cdots$ (and so $\Phi_{\text{OP}}(2.58) = 0.4950599642\cdots$), and so the exact value of $x_{0.9950}$ is definitely larger than the $2.575$ value obtained by linear interpolation.

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