Question

A manager who needs to predict sales of a product across a network of retail outlets wishes to understand the relationship between sales of the product and the price of the product. The sales are not seasonal in nature. The table below gives details of the quantity sold (000's) and the price ($) for a random sample of 10 similar ou l ets.

Price (X)	Quantity sold (Y)	Revenue
$4.10	180	$738.00
$4.80	60	$288.00
$4.40	115	$506.00
$4.62	80	$369.60
$4.20	166	$697.20
$4.60	100	$460.00
$4.35	136	$591.60
$4.90	50	$245.00
$4.80	90	$432.00
$4.24	160	$678.40

What price should the manager give the product in order to maximize revenues?

Answer 1