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.