Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Simulation
When decisions are to be taken under conditions of uncertainty, simulation can be used. Simulation as a quantitative method requires the setting up of a mathematical model which would represent the interrelationships between the variables involved in the actual situation in which a decision is to be taken. Then, a number of trials or experiments are conducted with the model to determine the results that can be expected when the variables assume various values. Simulation can therefore be defined as a procedure whereby one can draw conclusions about the behavior of a given system by examining the behavior of a corresponding model whose cause-effect relationships are similar to those in the actual system. There are a few basic concepts which must be understood before applying the simulating technique.
System: It is that segment to be studied or understood to draw conclusions. In the illustration given above, the market for the product together with the firms' production process constitute the relevant system. Only after the system is defined, can we identify the variables which interact with one another in the system and establish their relationships mathematically.
Decision Variables: A variable, as its name implies, may assume differing values under differing sets of circumstances. Decision variables are those variables whose value is to be determined through the process of simulation. In our illustration, the price to be charged by the firm for its product is the decision variable.
Environmental Variables: These are the variables which describe the environment and are dependent upon that environment in which the system is operating. In the illustration, competitors' average price, consumer preferences and demand, etc. are the environmental variables.
Endogenous Variables: Unlike the environmental variables these are generated within the system itself. In the illustration, quantity sold, sales revenue, total cost and profit are endogenous variables.
Criterion Function: One or more of the endogenous variables or some specified combination of these is used as the criterion function for evaluating the performance of the system. In the illustration, profit is used as the criterion function.
Related Positional Measures Besides median, there are other measures which divide a series into equal parts. Important amongst these are quartiles, deciles and percentiles.
As one of the oldest multivariate statistical methods of data reduction, Principal Component Analysis (PCA)simplifies a dataset by producing a small number of derived
"MagTek" electronics has developed a smart phone that does things that no other phone yetreleased into the market-place will do. The marketing department is planning to demonstrate
Waht is the product of £ x
In the case of permanent magnet DC motor whose stator consists of a permanent magnet we can take the field current to be constant (i.e. a constant magnetic field) and it can be sho
When the number of farmers growing wheat in Russia increases, the increase in world supply lowers the world price of wheat. Draw an appropriate diagram to analyze how this chang
Dr. Jim Mirabella UNIT EIGHT: DATA ANALYSIS PROJECT All Excel output should be copied into a single Word document where you must enter all of your responses to the questions below.
(i) Plot the step responses of the following second order systems and state the nature of each system. For each case, find the poles and plot the location of the poles in the compl
Explanation of standard deviation and variance Describe the importance of standard deviation and variance, what they calculate and why they are required. Importance of char
what is the use of applied statistic in our daily routin life
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd