Monday, February 13, 2012

What is WHAT-IF ANALYSIS?

Related Terms:simulation

attempt to represent a real-life system with a model to determine how a change in one or more variables affects the rest of the system, also called simulation . Simulation will not provide optimization except by trial and error. It will provide comparisons of alternative systems or how a particular system works under specified conditions. It is a technique used for what-if scenarios. The advantages of simulation are: (1) when a model has been constructed, it may be used over and over to analyze different kinds of situations; (2) it allows modeling of systems whose solutions are too complex to express by one or several mathematical relationships; (3) it requires a much lower level of mathematical skill than dooptimization model



Source: http://www.allbusiness.com/glossaries/what-analysis/4941923-1.html#ixzz1mJeZF8xn

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