Decision.docx

Decisionmaking and Quantitative Modeling Chapter1What do all of these have in common They are models They can be physical models such as a miniature model of an airplane or of a building a globe etc Physical models are built to look like the real thing and to resemble the larger object Two dimensional models such as maps also show the shape of the object The second type of models are Analog Models Analog Models try to represent something but they do not look like the object they are modeling For example a thermometer is a model that measures the heat in the room but it does not look like the heat Other examples are hourglasses speedometers etcFinally there are Mathematical Models These are models that represent a certain object using a mathematical relationship or equation For example ProfitRevenuesExpenses Parameters uncontrollable factors Independent or decision variables Dependent controllable Variables factors Mathematical Relationships