QA 305 Chapter Notes - Chapter 1: Spreadsheet, Mathematical Optimization, Variable Cost
Document Summary
Chapter 1: introduction to quantitative analysis p. 9-18. Models can help a decision maker formulate problems. Models can save time and money in decision making and problem solving. A model may be the only way to solve some large or complex problems in a timely fashion. A model can be used to communicate problems and solutions to others. Deterministic models: we assume that we know all values used in the model with complete certainty. Probabilistic models: models that involve change or risk. The role of computers and spreadsheet models in the quantitative analysis approach. Algorithm: a set of logical and mathematical operations performed in a specific sequence. Break-even point: the quantity of sales that results in zero profit. Business analytics: a data-driven approach to decision making that allows companies to make better decisions. Descriptive analytics: the study and consolidation of historical data to describe how a company has performed in the past is performing now.
