What is a mathematical model?

Give some examples of various types of models (more than

three). Provide two good real world practical applications of the use of a mathematical model
to solve a business problem. Show how the business problem was solved using the presented.
Explain in detail the results of each. Must have at least 500 words and must include charts,
graph, or formula.

Mathematical model is a representation of real world objects and devices and their behaviour
in mathematical terms. Since the modelling of devices and phenomena is essential to both
engineering and science, engineers and scientists have very practical reasons for doing
mathematical modelling. Mathematical model involves the use of mathematical symbols,
letters, expressions, and mathematical operators to represent relationship among variables of
the system to describe its property or behaviour.
The relationship among velocity, distance and acceleration is a good example of
mathematical model.
Models can be of various types:
Descriptive models for example simulations
Predictive models this models indicates if this occurs, then this will happen
Static Models
Dynamic Models
Deterministic models
Heuristic models

Real world practical explanations

Every company have some form of accounts to be maintained which involves recording the
number of transactions daily in a business book and then accounting those transactions for
profit and loss. These companies must need some form of model to analyze their assets,
liabilities and profit or loss for every quarter, every year of their operations. Also there are
certain models which calculates money for individuals and their businesses. Some models
talks about the order quantity for big businesses like the inventory models.

First example:

This is a human resource accounting model which shows the equation for the expected capital
value of a person at T years of age.
This model is used by many companies to evaluate the amount of money being invested upon
their employees and calculate returns based on it.

Second example:
There are many things to control when a manufacturing business is set up. The main problem
lies with the inventory control model and knowing when and how much to order for letting
the production process continue as it is.
Mathematical models helps in this business by giving out a number which is the EOQ or the
economic order quantity, that needs to be ordered every time the inventory goes down below
a certain specified level.

Economic Order Quantity (EOQ) Model Inventory model for constant demand and
instantaneous supply replenishment with no backorders.
The parameters of the EOQ Model are:
k = fixed cost per order
A = annual (or periodic) number of items demanded
c = (variable) cost to procure one unit
h = annual (or periodic) cost per dollar value of holding inventory
T = time between orders
Again, the objective is to choose the number of items to order (order quantity)

Q = Order Quantity that minimizes

Total Annual Cost = Ordering + Holding + Procurement Costs