Page 431 - qrps

© 2014 Pacific Crest 431
● Not enough information about inputs
Example: The value of a stock for a company cannot always be accurately modeled, even
though we have information about the stock at earlier times.
Why? Some of the inputs in the model depend on information privy only to employees at
the company.
● Too many model inputs
Example: Theoretically modeling the flow of air around the wing of a plane has been without
conclusive results despite having equations that determine the movement of the
particles.
Why? Each particle has some initial conditions that serve as inputs and since the number of
particles is so great, the model is difficult even for computers to process.
Are You Ready? Before continuing, you should be able to ...
I can... OR Here’s my question...
identify characteristics in a situation that
are likely to vary and determine a range of
values that they will possibly take on
explain the role of one-at-a-time analysis
in what-if modeling
understand the steps of the methodology
for what-if modeling
Plan How to complete the activity
1. Review the sample application model for population growth “Limited Resources.” The data behind
the Model is available in a spreadsheet on the companion website.
2. Use this same methodology to model the change in population described by “Predator Prey.” (Data
available from the companion website.)
3. Apply the process of what-if modeling to this scenario.
4. Answer the Critical Thinking Questions.
5. Complete the remainder of this activity (from Demonstrate Your Understanding through Assessing
Your Performance) on your own, or as directed by your instructor.
9.3 What-If Modeling