Quantitative Method in Practice Break-even Point

Question 1

• It is a representation of a system or a phenomenon
• These representations can be in the form of diagrams, maps, flowcharts, mathematical equations, graphs, computer simulations, or **physical replicas of the system. **

Answer 1

Model

Question 2

Physical replicas (scalar representations) of real objects.

Answer 2

Iconic Models

Question 3

physical in form, but do not physically resemble the object being modeled.

Answer 3

Analog / Schematic Models

Question 4

represent real world problems through a system of mathematical formulas and expressions-based or key assumptions, estimates, or statistical analyses

Answer 4

Mathematical Models

Question 5

allows you to precisely calculate an outcome, without the involvement of uncertainty or unpredictability or randomness.

Answer 5

Deterministic Model

Question 6

It has all the data required to predict the outcome with certainty

Answer 6

Deterministic Model

Question 7

It always provides the same output for a certain set of input variables.

Answer 7

Deterministic Model

Question 8

(Stochastic model) refers to the property of having a random probability distribution that can be statistically analyzed but may not be predicted accurately.

Answer 8

Probabilistic model

Question 9

It is the process of describing a real world problem in mathematical terms, usually in the form of equations, then using these equations both to help understand the original problem, also to discover new features about the problem.

Answer 9

Mathematical Modelling

Question 10

It is an abstract representation of real-world systems using mathematical language and concepts.

Answer 10

Mathematical modelling

Question 11

Advantages of Mathematical Model

allows us to develop accurate ideas and assumptions.

Answer 11

Precision

Question 12

Advantages of Mathematical Model

it has clear and established rules.
Problem-solving: give us direction when trying to solve a

Answer 12

Conciseness

Question 13

Advantages of Mathematical Model

——- and —– production

Answer 13

Quick and easy production

Question 14

Advantages of Mathematical Model

simplify a more complex situation.

Answer 14

Simplification

Question 15

Advantages of Mathematical Model

Improves our —— in the real world.

Answer 15

Improves our understanding in the real world.

Question 16

Advantages of Mathematical Model

enable predictions to be made.

Answer 16

Predictions

Question 17

Advantages of Mathematical Model

considerations must be considered in selecting an appropriate model.

Answer 17

Cost / benefit

Question 18

Elements and Expression Use in Mathematical Model

a mathematical expression that describes the problem’s objective, such as maximizing profit or minimizing cost.

Answer 18

Objective Function

Question 19

a set of restrictions or limitation, such as production capacities.

Answer 19

Constraints

Question 20

The analyst attempts to identify the alternative that provides the “best” output for the model

Answer 20

Model solution

Question 21

The “best” output is the ——-

Answer 21

optimal solution

Question 22

Often accuracy of a model cannot be assessed until solutions are generated

Answer 22

Model Testing and Validation

Question 23

If inaccuracies are identified, take corrective action such as:

Answer 23

• Collection of more accurate input data.
• Modification of the model.

Question 24

Quantitative Analysis Process:

Answer 24

1. Model Development
2. Data Preparation
3. Model Solution
4. Report Generation

Question 26

• A managerial report, based on the results of the model, should be prepared
• The report should be easily understood by the decision maker.

Answer 26

Report Generation

Question 27

• Continue to monitor the contribution of the model
• Secure as much user involvement as possible throughout the modeling process.

Answer 27

Implementation and Follow-up