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According to Money, the average appreciation, in percent, for stocks has been 4.3% for the five-year period ending in May 2007.5 An analyst tests this claim by looking at a random sample of 50 stocks and finds a sample mean of 3.8% and a sample standard deviation of 1.1%. Using alpha = 0.05, does the analyst have statistical evidence to reject the claim made by the magazine?

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