CHAPTER ONEIntroduction to Modeling
1.1 DEFINITION
Modeling can be defined as the process of describing a business situation through the use of an instrument called a model. Models are built to provide a rational and rigorous basis for decision making.
1.2 EXAMPLES OF SITUATIONS REQUIRING THE USE OF A MODEL
The following are examples of situations in which a model can be of use:
A model can be used to provide a solid foundation that supports a structural business change. For example, behind every significant commercial deal (for example, a merger of two companies), there is a financial model.
A model can be used to help identify critical business ...
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