The Chamber of Commerce of a Florida community advertises that area residential property is available at a mean cost of $25,000 or less per lot. As a part-time resident, you believe this to be an untrue statement and you seek to test the validity of this claim at the .05 level of significance. You collect a sample of 32 properties and find the sample mean to be $26,000 per lot with a sample standard deviation of $2500.
Microsoft Outlook is believed to be the most widely used e-mail manager. A Microsoft executive claims that MS Outlook is used by at least 75% of all internet users. A study by a leading marketing research firm reported that 72% of the people use MS Outlook. Test the MS executive's claim assuming that a sample of size 300 was taken by the marketing research firm.
The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.