BUS 660 – lecture aid8

BUS 660 - BUS 660 lecture aid Simulation Introduction Simulation is generally the business modeling technique of last resort so it is appropriate

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BUS 660 – lecture aid Simulation Introduction Simulation is generally the business modeling technique of last resort, so it is appropriate to leave it for the very last week of this course. Recall from Module 1 that models merely approximate reality. Many business situations can be addressed by the models studied in previous weeks because the situations approximate one that falls within the purview or range of influence of that model. For example, a sales forecasting situation may benefit from simple or multiple linear regression modeling simply because the pattern of past sales numbers has approximately followed a linear trend with respect to the independent (or explanatory) variables. Alternately, many strategic decision-making situations lend themselves to decision analysis models because these situations can be approximated by the combination of future scenarios (or states of nature) and competing decisions that are used in a decision analysis model. Note that all of the models studied so far have represented somewhat idealized situations. When the real-
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This note was uploaded on 08/05/2010 for the course BUS BUS-660 taught by Professor Sheilad.fournier-bonilla during the Spring '10 term at Grand Canyon.

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