(p. 79). 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. Tenant S&P Credit Rating 5-Year Capitalization Rate (%) Best Buy BBB