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5. A company test-markets a new soft drink in 22 cities of approximately equal size. The selling price (in dollars) and the number sold per week in the cities are listed as follows:
a. First, the company wants to find the demand curve1: how many it will sell at each potential price. Let P denote price and S denote sales per week. Find the line
b. After studying the results of the test marketing, the company will set a single selling price P throughout the country. Given a manufacturing cost of
dollars. Use the results of the preceding least squares approximation to find the selling price for which the company’s profit will be maximized.
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