Spreadsheet modeling involves using spreadsheet software, like Microsoft Excel or Google Sheets, to create a simplified representation of a real-world problem or system. This allows for analysis, prediction, and decision-making based on different scenarios. Key Characteristics / Core Concepts Uses spreadsheet software to represent complex systems. Involves building mathematical models using formulas and functions. Allows … Read more
Quantitative analysis is a systematic approach to understanding data using mathematical and statistical methods. It focuses on numerical data to identify patterns, trends, and relationships. Key Characteristics / Core Concepts Numerical Data: Relies heavily on measurable data, such as numbers and figures. Statistical Methods: Employs techniques like regression analysis, hypothesis testing, and probability distributions. Mathematical … Read more
Mathematical finance is the branch of finance that uses mathematical and statistical methods to solve financial problems. It draws heavily on probability, statistics, and stochastic calculus to model and analyze financial markets and instruments. Key Characteristics / Core Concepts Stochastic Processes: Uses random processes (like Brownian motion) to model price movements and other financial variables. … Read more
Financial modeling is the process of creating a simplified representation of a company’s or project’s financial performance to forecast its future performance and make informed business decisions. It uses mathematical relationships and assumptions to project financial outcomes. Key Characteristics / Core Concepts Forecasting: Predicting future financial performance based on historical data and assumptions. Scenario Planning: … Read more