Please answer all of these questions completely with the clear step and explanation.

1. Company A reports the following series of quarterly earnings: Q1 = 0.250; Q2 = 0.300; Q3 = 0.280; Q4 = 0.270; Q5 = 0.250; Q6 = 0.320; Q7 = 0.290; Q8 = 0.285. An analyst assumes that company As quarterly earnings perfectly follow the time-series process described by the Foster model. Under this assumption, the analysts forecast of quarter 9 earnings is

A. 0.2550

B. 0.2425

C. 0.2750

D. 0.2625

(Solution says D)

2)The price sensitivity of customers in the hotel industry

a. Varies depending on what day of the week it is.

b. Is positively affected by the availability of web booking systems and the resulting price transparency in the industry.

c. Is negatively affected by the lack of hotels in a particular geographical area.

d. None of the above