Solutions to Which of the Following Categories of Modeling Techniques

question 32

Multiple Choice

Solutions to which of the following categories of modeling techniques indicate a course of action to the decision maker?

• A) Descriptive models
• B) Predictive models
• C) Prescriptive models
• D) Preventive models

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Definitions:

Utility

A term in economics referring to the satisfaction or benefit derived by consuming a product or service.

Consumption

Refers to the use of goods and services by households.

Utils

An imaginary unit of measurement used in economics to represent the satisfaction or utility received from consuming goods and services.

Marginal Utility

An additional amount of satisfaction gained from consuming an extra unit of a good, highlighting the concept of diminishing returns.