Based on Your Understanding of the Relation Between Risk and the Phases

question 18

Multiple Choice

Based on your understanding of the relation between risk and the phases of an income producing property's life, which phase would you expect to entail the highest risk?

• A) Development and construction phase
• B) Lease-up stage
• C) Stable operation phase
• D) All three stages of a property's life have similar and equal risk

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Definitions:

Type II Error

The error that occurs when a false null hypothesis is not rejected; failing to detect an effect that is present.

Type II Error

A statistical error that occurs when a test fails to reject a false null hypothesis, also known as a false negative.

Effect Size

A quantitative measure of the strength of a phenomenon or the magnitude of a difference between groups in a statistical analysis.

Significance Level

A threshold used in hypothesis testing that determines the probability of rejecting a null hypothesis when it is actually true.