Monday, August 29, 2011

Simulation

To simulate is to try of duplicate or imitate the features, appearance, and characteristics of a real system. Simply, simulation is a technique of testing a model, which resembles a real-life situation.

The term simulation in the context of business and social science applications refers to the operation of a numerical model that represents the structure of a dynamic process. Given the values of initial conditions, parameters and exogenous variables a simulation is run to present the behaviour of the process over time. Simulation approach can also be useful in building models for understanding future conditions.

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