BIT 3434 Chapter Notes - Chapter 1: Dependent And Independent Variables, Spreadsheet, Mathematical Model
26 Jan 2017
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Document Summary
The modeling approach to decision making: mathematical model - uses mathematical relationships to describe or represent an object or decision problem. Characteristics and benefits of modeling: valid model - a model that accurately represents the relevant characteristics of the object or decision problem being studied, models are usually simplified versions of what they represent. Mathematical models: often describe functional relationships, y is a function of x1 and x2 y = f( x1 , x2) Categories of mathematical models: prescriptive models. When the independent variables are known or under the user"s control. Function is known and well-defined: predictive models. Functional form might be unknown and must be estimated to make predictions about y. Independent variables are known or under the user"s control however it may be hard to tell the exact relation between the variables: descriptive models. Precise, well-defined function but great uncertainty with regards to the exact values of one or more of the independent variables.
