Student Sample Report

Student Sample - DS 408 1 Chapter 1 problem 1.6 Does this make Cents Preparing information for basic investment simulation models gtmacway@sfsu.edu

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. . . . . . . . . . .......... DS 408 – 1 Chapter 1 problem 1.6 Does this make Cents? Preparing information for basic investment simulation models gtmacway@sfsu.edu
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. . . . . . . . . . 2 Does this make Cents? Preparing information for basic investment simulation models Executive Summary When making informed investment decisions, a proper understanding of the problem is very important. In this report, we will be observing a scenario and organizing the information in a way that will facilitate creating a basic investment decision model. We will highlight any assumptions or simplifications that are made as well as identify the model’s input parameters, decision variables and output parameters. Introduction Investment decision models are constructed using information surrounding the decision to be made. A choice has to be made, but what is the goal? What makes option 1 different than option 2? This information is the foundation allowing create a representation of all given information, unknown information and decisions, known as a model. By organizing our information in preparation for creating a model, we can “see” our decision better and make a more informed decision. Scenario Description In our example, we are given a scenario where a choice between two investments has to be made. We have $10,000 and it has to be invested for 5 years in one of two options.
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This note was uploaded on 01/26/2012 for the course DS 408 taught by Professor Theresam.roeder during the Spring '12 term at S.F. State.

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Student Sample - DS 408 1 Chapter 1 problem 1.6 Does this make Cents Preparing information for basic investment simulation models gtmacway@sfsu.edu

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