ABSTRACT
Chapter 1 consider the importance of modeling for decision-making in business (B), industry (I), and government (G), BIG. BIG decision-making is essential to success at all levels. We do not encourage shooting from the hip or simply flipping a coin to make a decision. We recommend good analysis that enables the decision-maker to examine and question results to find the best alternative to choose or make a decision. This book presents, explains, and illustrates a modeling process and provides examples of decision-making analysis throughout. As an introduction to the modeling experience for business analytics, we present a process for modeling that consists of nine steps to enable a modeler to traverse the entire quantitative decision-making experience. We preset numerous examples from business, industry, and government that will be solved in subsequent chapters. Modeling is thought as a three-prong approach: (1) make assumptions, (2) build the model and (3) interpret the results. The latter two are self-sufficient but the first is where a modeler must defend their position. We describe a mathematical model as a mathematical description of a system using the language of mathematics. A mathematical model may be used to help explain a system, to study the effects of different components, and to make predictions about behavior. It certainly helps in decision-making.
