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According to Money, which not only looked at stocks (as in problem 7–20) but also compared them with real estate, the average appreciation for all real estate sold in the five years ending May 2007 was 12.4% per year. To test this claim, an analyst looks at a random sample of 100 real estate deals in the period in question and finds a sample mean of 14.1% and a sample standard deviation of 2.6%. Conduct a twotailed test using the 0.05 level of significance.

According to Money, which not only looked at stocks (as in problem 7–20) but also compared them with real estate, the average appreciation for all real estate sold in the five years ending May 2007 was 12.4% per year. To test this claim, an analyst looks at a random sample of 100 real estate deals in the period in question and finds a sample mean of 14.1% and a sample standard deviation of 2.6%. Conduct a twotailed test using the 0.05 level of significance.

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