Refer to The Appraisal Journal (Summer 2019) study of the valuation of single Refer to The Appraisal Journal (Summer 2019) study of the valuation of singletenant properties. Recall that the ratio of net operating income to property asset value—called the capitalization rate—was determined for a sample of 13 retail property tenants. Data on S&P credit ratings and 5-year capitalization rates for the 13 tenants are reproduced in the table.

a. Estimate the mean 5-year capitalization rate of all single-property retail tenants using a 95% confidence interval. Interpret the results.

b. Estimate the mean 5-year capitalization rate of all singleproperty retail tenants with a low (BBB−) S&P rating using a 95% confidence interval. Interpret the results.

c. Estimate the mean 5-year capitalization rate of all single- property retail tenants with a high (A, AA−, or AA) S&P rating using a 95% confidence interval. Interpret the results.

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Tenant Best Buy BJ's Warehouse Dollar General Dollar Tree Family Dollar Kohl's Kroger Lowe's Sherwin-Williams The Home Depot United Rentals Walmart Whole Foods Market S&P Credit Rating BBB B BBB- BBB- BBB- BBB- BBB BBB+ BBB A BB AA AA- 5-Year Capitalization Rate (%) 8.25 7.40 8.45 7.50 8.50 8.50 7.25 6.70 6.75 6.75 8.15 6.75 5.50