MSE unit 1

What is the primary purpose of a model in decision-making?

• To make the process more complex

• To represent and analyze real-world systems

• To eliminate all assumptions

• To create random outcomes

Which of the following is NOT a characteristic of a good model?

• Simplicity

• Predictive power

• High complexity

• Flexibility

In modeling, what do we call the quantities that can change or vary?

• Parameters

• Constants

• Variables

• Constraints

What is an example of a deterministic model?

• Coin toss probability

• Simple interest calculation

• Weather prediction

• Traffic flow simulation

What does a stochastic model incorporate that a deterministic model does not?

• Relationships between variables

• Assumptions

• Randomness and probability

• Mathematical calculations

Which element of a model represents the rules or conditions that must be met?

• Variables

• Constraints

• Parameters

• Relationships

What is the first step in the process of creating a model?

• Defining the problem and objectives

• Collecting data

• Building the framework

• Running simulations

Which of these is an example of a static model?

• A real-time traffic simulator

• A financial balance sheet

• Weather forecasting model

• Stock market simulation

What is sensitivity analysis used for in modeling?

• To increase model complexity

• To evaluate how changes in inputs affect outputs

• To eliminate the need for assumptions

• To simplify a model

Which of these is a dynamic model?

• Income statement for a single month

• Climate change simulation

• A static organizational chart

• A simple multiplication formula