Consider the following model of revenue: 1-a- REVt = S Kat1 L it-1 it-1 Where REV is the revenue (in millions of dollars) of firm i in period t, Kit-1 is the capita expenditure of the firm in period t-1, Lit-1 is the non period t-1. We know that the is the labour input of the firm in period t-1, and A-1 is the advertising expenditure most popular empirical model in Finance is Ordinary Least Square (OLS) which is also known as the Best Linear Unbiased Estimator (BLUE). Suggest how can yo estimate the revenue model using OLS? How would you interpret the a and coefficients from the OLS model? You observe the following data regarding the key parameters and inputs of the model based on historical data: Parameter Min Max Average So 120 200 170 K 150 250 200 L 165 215 185 A 160 190 175 0.25 0.75 0.50 0.25 0.75 0.50 Based on the observed data in the table above, what would be your forecast of revenue for your firm in the next period? Be as precise as you can. (5 Marks)