CHAPTER 1

Definition of Model

Generally model is a thing used as an

example to follow or imitate.
Model is any graphical, mathematical
(symbolic), physical, or verbal
representation or simplified version of
a concept phenomenon, relationship,
structure, system or an aspect of the
real world.

Model can be classified into three:

1. Iconic
model

Least abstract, physical, look-alike model such as a

model of airplane or train.

More abstract but having some resemblance to what it

2. Analogous represents such as chart, map, graph, network diagram.
model

Most abstract model with no resemblance but only an

approximation to what it represents, such as a
3. Symbolic mathematical equation or formula, financial statement,
model
language, and set of accounts.

Purpose of Modellin
to simplify, explain
and present data to
other people in a
simpler way.

can be present in
various forms such
as graft, chart,
miniature, equation,
prototype and
percentage.

helps an organization
to determine the
relationship between
variables

determine whether
the model is
significant or not

helps to forecast the

future based on
historical data

The Benefit of Modelling

1. Identify the consequences of
a change
through from try to create a
these
counter
plan a counter
consequences measure that
measure to
we can list
can help to
manage all
down all the
minimize the
the risk.
error
errors

2. Identify the
future outcome
discover all the
predict the
causes for a
possible outcome problem to happen
of the real product. and what and how
much will it affect.

3. Viewing system from multiple

perspective
For an example in
equation model by
viewing the model
to organize and
also to provide
from various
understand
systematic
perspective we can
properly the system
approach needed to
identify the exact
and also the model
problem solving
element that will
affect the model
and what is not

Disadvantages of
Modeling
1) Inaccuracy

Required formula may not be

provided in the model

The results depends on how good the

model is

2) Costly
Need expertise to run the program

The equipment and software are

expensive to purchase

3) Human error
Error when inserting thousands of
input

Error when running the program