Valuation of single-tenant properties. Refer to The Appraisal Journal (Summer 2019) study of the valuation of single-tenant properties, Exercise 8.12 (p. 450). 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. In Exercise 8.12, you used the smallsample t-test to compare the mean 5-year capitalization rate of all single-property retail tenants with low (BBB-) S&P ratings with the corresponding mean for high (A, AA-, or AA) S&P ratings. Now you want to make a similar comparison using the nonparametric Wilcoxon rank sum test.

a. State the null and alternative hypothesis for the nonparametric test.

b. Compute the Wilcoxon rank sum test statistic.

c. Find either the rejection region or p-value for the test.

d. Using a = .10, make the appropriate inference. S&P Tenant 5-Year Capitalization Rate (%) Credit Rating Best Buy BBB 8.25 BJ’s Warehouse B 7.40 Dollar General BBB- 8.45 Dollar Tree BBB- 7.50 Family Dollar BBB- 8.50 Kohl’s BBB- 8.50 Kroger BBB 7.25 Lowe’s BBB+ 6.70 Sherwin-Williams BBB 6.75 The Home Depot A 6.75 United Rentals BB 8.15 Walmart AA 6.75 Whole Foods Market AA- 5.50 Source: Sellers, L.P., et al. “Valuation Methods and Dark Big-Box Theories”, The Appraisal Journal, Vol. 87, No. 3, Summer 2019 (Exhibit 1)