QUESTION 6 6 points Save Answer (Do not round any number in this question. Exact match is required as all answers are integers.) Suppose that you are a Marketing Manager of a company which manufactures products for highly price-sensitive customers. Knowing this, you anticipate a negative relationship between the price and demand. You ask one of your interns to dig into the sales transactions data and to plot weekly aggregated sales in terms of weekly average price. The plot not only shows a pattern of negative relationship but also indicates a linear relationship. Therefore, you do a regression analysis on sales with respect to the price and you obtain the following: Linear Regression of Weekly Sales by Price 70,000 60,000 50,000 40,000 O 30,000 Sales = 183710-1276,7"price 20.000 10,000 O 90 95 100 105 110 120 125 130 135 140 115 Price (5) Sales Linear Sales Linear (Sales) The intercept of the regression line is while the slope coefficient is .You share this regression model with your friend Donnie who is a Revenue Manager in the same company. Donnie believes that the company is overpricing this product and they lose many customers to the competitors. He wants to suggest a lower pricing strategy to the CFO but he does not know what price exactly he should suggest. Donnie remembers your model and using the model, he calculates the sales forecast for candidate price levels and then estimates revenue that would be generated with each price. If price is $50, the sales forecast is 119.875 and the estimated gross revenue is $5,993,750. (Hint: gross revenue = price * forecast) If price is $70, the sales forecast is 94.341 and the estimated gross revenue is 56.603.870. If price is $100. the sales forecast is and the estimated gross revenue is $ (Hint: gross revenue = price forecast). If price is $130. the sales forecast is 17.739 and the estimated gross revenue is $2.306,070 If price is $140, the sales forecast is 4.972 and the estimated gross revenue is $696,080. As he is done with the analysis, Donnie suggests the base price of 5 which generates the highest gross revenue