a) b) c) d) e) Metro Estate Agency operates several offices in a large city, specialising in property sales and lettings. The company has grown rapidly over the last year or so and has been expanding its business to accommodate the increasing demand for its services. As an aid in planning, a forecast of the next three months' revenue is needed each month. Revenue data (in £100) for the last 17 months are given below. Month t Revenue Yt 1 999 2 1123 3 1503 4 1762 5 2126 6 2315 7 2239 10 11 12 13 14 15 Month t Revenue Yt 3024 3467 3528 3441 3588 3746 Table 2: Monthly revenue of Metro Estate Agency 16 3628 8 2655 17 4021 9 2787 Plot the time series and discuss why Holt's two parameter method would be appropriate for forecasting monthly revenue of Metro Estate Agency. Using the initial values mo-900, bo=180 and smoothing constants a=0.2, p=0.3 carry out double exponential smoothing (Holt's method) in Excel and forecast the company's revenue for the next three months. Hand in all your Excel work (clear readable version), including formulae, with your coursework. Superimpose the smoothed estimate of the mean mt on your time series plot and comment on how the estimated mean recaptures the data. Hand in all your Excel work with your coursework. Plot the successive one-period-ahead predictions (for each time point) on the time series plot and comment on how well they capture the features in the observed data. Hand in all your Excel work with your coursework. If the revenue for the month 18 were £410,000 what would be your revised forecast for the next two months? Give details of your calculations.

2015 2020 ITEM PRICE QUANTITY PRICE QUANTITY Cup of coffee 8.50 50 10.50 60 Toasted cheese sandwich 13.00 35 14.00 25 English muffin 9.00 120 9.50 138 The preliminary analysis of the data produced the following table: po qo p1 q1 poqo poq1 p1qo p1q1 8.50 50 10.50 60 425 510 525 630 13.00 35 14.00 25 455 325 490 350 9.00 120 9.50 138 1080 X 1140 1311 Σ W Y 2155 Using the table of analysis shown above, answer the following questions (use 2015 as the base year):

Complete the following table and draw a graph showing how bond price for each bond changes over time as they move towards their maturity dates. Describe the relationship between bond prices and time remaining for maturity. Using the table below show all the calculations for every bond prices calculated  Years remaining to maturity BOND A Coupon rate = 8% p.a. Market interest rate = 6% p.a. BOND B Coupon rate = 6% p.a. Market interest rate = 6% p.a. BOND C Coupon rate = 4% p.a. Market interest rate = 6% p.a. 10       9       8       7       6       5       4       3       2       1       0

Calculate the average inventory (in $) and inventory turnover ratio for the given company. (Round the inventory turnover ratio to one decimal place.) Company BeginningInventory EndingInventory AverageInventory Cost ofGoods Sold InventoryTurnover a hardware store $315,220 $300,070 $  $4,856,470