One of our smaller clients, Dream Grills, sells its one product, the Dream Grill 5000, in two forms: assembled and unassembled. Based on economics theories about substitute commodities, they have been making projections and analyses for their business plan based on the following models of their revenue.

In these models, the P and Q refer to the price and the quantity of the two items; the subscripts A and the U refer to the ”assembled” and ”unassembled” versions of the product. Thus, the quantity P_A is the price of the assembled grills, based on the quantities of each version that are sold.

The company has collected revenue and quantity sales data for the last 50 weeks. Formulate a regression model for the revenue and compare the two models, yours and theirs, using graphical and analytical tools you feel are appropriate to illustrate the differences.

Attachments: Data File C13 Revenue.xls [.rda]