There are several basic kinds of models used for making business decisions. The models are:- 1. Analog Model 2. Iconic Model 3. Verbal Model 4. Mathematical Model. 1. Analog Model: An 'analog' model is a physical representation of the real world. A mock-up of an airplane is an analog model. An architect may place a mock-up of a building to [...]
In this article we will discuss about the concepts of heuristic model and heuristic programming used in managerial decision making. Heuristic Model: The term 'heuristic' means serving to discover or to stimulate investigation, in a literary sense. In its technical sense, heuristic is frequently associated with the simulation of human problem-solving techniques by means of computers. Heuristic model refers to [...]
Some of the frequently asked exam questions on quantitative models and strategic decisions are as follows: Q.1. What is a ‘Model’ in business decisions and strategies? Ans. The word 'model' is often used in conjunction with quantitative techniques for business decision making and for strategic choices. Almost all quantitative techniques can be classified as models. Generally all business decision situations, [...]