abstraction of a real-life system used to facilitate understanding and to aid in decision making. It has become a popular device in business. The model can be classified into three popular types: (1) physical model; (2) graphical model; and (3) mathematical model. Examples of physical models are childhood toys such as dolls and toy airplanes. Graphical models are abstractions of lines, symbols, shapes, or charts-for example, a break-even chart . Mathematical models are the ones that have stimulated most of the recent interest in models for decision making. Any mathematical formula or equation is a model. Mathematical models are used to solve planning and decision problems and to answer various what-if scenarios. Examples include the break-even model and Linear Programming (LP) .
Source: http://www.allbusiness.com/glossaries/model/4944881-1.html#ixzz1mJlt3HEv
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