1|Page
,Table of Contents
............................................................................................................................................................ 2
INTRODUCTION .................................................................................................... 3
Systems, models and problem solving .................................................................... 3
Explain what is meant by systems thinking: ............................................................ 3
Describe the benefits of models: ............................................................................. 4
Construct a concept model of a system or problem: ............................................... 4
Describe the phases of the modelling process:....................................................... 4
Explanation of how to do spreadsheet tasks: .......................................................... 8
Formulas of key concepts ....................................................................................... 9
Capital budgeting .................................................................................................. 11
key formulas used in capital budgeting and their explanations: ............................ 11
Describing and modeling data using statistics ...................................................... 13
Ways To Incorporate Risk Into Capital Budgeting Decisions ................................ 15
Portfolio theory ...................................................................................................... 19
2|Page
, INTRODUCTION
Systems, models and problem solving
Explain what is meant by systems thinking:
• A way of thinking that considers the complex interactions between different
parts of a system and how they affect each other and the overall system.
• Views the system as a whole, rather than as a collection of individual parts.
• Involves analyzing feedback loops, cause-and-effect relationships, and system
dynamics.
• Aims to understand the behavior of a system and identify opportunities for
improvement.
2. Describe an entity or situation as a system:
• A system is made up of interconnected and interdependent components or
elements that work together to achieve a common goal or purpose.
• Can be a physical, biological, social, or technological system.
• Can be characterized by inputs, processes, outputs, feedback loops, and
boundaries.
• Can be analyzed using systems thinking to identify patterns and relationships
between different components and how they affect the overall system.
3. Name and describe the different types of models:
• Conceptual models: simplified representations of a system or problem that
illustrate its key elements and relationships.
3|Page
,Table of Contents
............................................................................................................................................................ 2
INTRODUCTION .................................................................................................... 3
Systems, models and problem solving .................................................................... 3
Explain what is meant by systems thinking: ............................................................ 3
Describe the benefits of models: ............................................................................. 4
Construct a concept model of a system or problem: ............................................... 4
Describe the phases of the modelling process:....................................................... 4
Explanation of how to do spreadsheet tasks: .......................................................... 8
Formulas of key concepts ....................................................................................... 9
Capital budgeting .................................................................................................. 11
key formulas used in capital budgeting and their explanations: ............................ 11
Describing and modeling data using statistics ...................................................... 13
Ways To Incorporate Risk Into Capital Budgeting Decisions ................................ 15
Portfolio theory ...................................................................................................... 19
2|Page
, INTRODUCTION
Systems, models and problem solving
Explain what is meant by systems thinking:
• A way of thinking that considers the complex interactions between different
parts of a system and how they affect each other and the overall system.
• Views the system as a whole, rather than as a collection of individual parts.
• Involves analyzing feedback loops, cause-and-effect relationships, and system
dynamics.
• Aims to understand the behavior of a system and identify opportunities for
improvement.
2. Describe an entity or situation as a system:
• A system is made up of interconnected and interdependent components or
elements that work together to achieve a common goal or purpose.
• Can be a physical, biological, social, or technological system.
• Can be characterized by inputs, processes, outputs, feedback loops, and
boundaries.
• Can be analyzed using systems thinking to identify patterns and relationships
between different components and how they affect the overall system.
3. Name and describe the different types of models:
• Conceptual models: simplified representations of a system or problem that
illustrate its key elements and relationships.
3|Page
