ABSTRACT
Analytics techniques may be categorized as descriptive, prescriptive, and predictive. Computer simulation is one of few techniques that cross over the boundaries of all three categories. Simulation is also one of the most powerful and one of the most underrepresented analytics techniques. It is critical that simulation be more commonly taught to students studying business intelligence and analytics. Teaching of structured simulation engages students while enhancing their modeling skills. Students learn to create computer representations of physical systems, resulting in substantial cost savings to companies of any size. Simulation analysis required the development of a baseline model, validation of the baseline model (against the performance of the true physical operation), and creation of models to represent relevant potential business scenarios. Statistical tools are used before (fitting statistical distributions) and after completion of simulation (hypothesis testing), to determine significance and validity of results.
