Definition of Mathematical Model

Mathematical Model is used to represent the problems of the real world simply. Mathematical models take the approach to represent real-world scenarios in the form of equations or scenarios. Mathematical models didn’t exactly replicate the real-world scenarios.

Mathematical models in business help managers to make decisions about the projects, investments, optimizing processes, or make predictions about the company’s growth or revenues.

Regression analysis, NPV, IRR, Differential equations etc. are a few techniques used in mathematical models.