Using the regression data below:

Ignoring uncertainty regarding the coefficient estimates. In other words, assume your demand exactly equals the demand specified by your coefficient estimates. Your memo should contain the following information:

1. Give a recommendation on which of Market 1 or 2 to enter.
2. Assuming only a single price can be set, state what price should be charged in each of the markets and how price should vary with the advertising budget. State what level of profit you expect from each of the two markets. Please note under this demand specification, using the single-pricing markup rule can be difficult since the demand elasticity changes as we move along the demand curve. As such, you will likely bebetter off performing a "brute-force" analysis. In other words, calculating the profits at a variety of relevant advertising/price/etc. levels.
3. Discuss the value (if there is any) of doing additional market research to learn what prices other firms are charging in Market 2. Give advice on whether this research should be conducted.
4. Offer conclusions, for future reference and guidance, about what "kind" of market your firm should look to for subsequent market expansions based on your quantitative analysis.

Regression Statistics
Multiple R	0.981
R Square	0.962
Adjusted R Square	0.957
Standard Error	29493.745
Observations	48
ANOVA
	df	SS	MS	F	Significance F
Regression	6	910215513269.525	151702585544.921	174.395	0.000
Residual	41	35665120548.788	869880988.995
Total	47	945880633818.312
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	282031.242	59886.492	4.709	0.000	161088.018	402974.467	161088.018	402974.467
Price	-81266.483	9541.152	-8.517	0.000	-100535.231	-61997.735	-100535.231	-61997.735
Advertising	3.664	0.597	6.139	0.000	2.458	4.869	2.458	4.869
Competitor's Price	19969.543	8075.832	2.473	0.018	3660.069	36279.017	3660.069	36279.017
Income	0.052	1.293	0.041	0.968	-2.559	2.664	-2.559	2.664
Population	0.031	0.002	20.445	0.000	0.028	0.034	0.028	0.034
Time	1918.019	1951.702	0.983	0.331	-2023.523	5859.561	-2023.523	5859.561
Demand Specification
Qband=a+bPband+cA+dPcomp+eI+fPop+gT+u
Inputs
	Market 1	Market 2
Price	$5.49	$4.20
Compet Price	$4.99	$3.70
Advertising	$15,000.00	$15,000.00
Advertising 2	$7,500.00	$7,500.00
Income	$20,000.00	$16,000.00
Population	2,010,000.00	5,500,000.00
Time	9	9
Cost	$3.00	$3.00
	Market 1	Market 2
Qband	$71,494.17	$259,230.61
Gross Profit	$392,503.01	$1,088,768.56
Operating Profit	$163,020.49	$296,076.73
Comp Elasticity	1.39	0.29
Own Elasticity	-6.24	-1.32
Income Elasticity	0.01	0.00
Advertisting Elasticity	0.77	0.21
Pop Elasticity	0.88	0.66
Time Elasticity	0.24	0.07
Marginal Cost	$3	$3
Optimal Mark-Up	1.190824744	4.157936015
Optimal Pricing	$3.57	$12.47
Profit Price w/ advertsiting at $7500	$4.52	$5.03
Profit Price w/ advertsiting at $15000	$4.70	$5.28
Profit w/ advertsiting at $7500	$179,225.21	$326,033.66
Profit w/ advertsiting at $15000	$218,095.06	$375,935.20