What do you understandby static mathematical model? Explain with example. Differentiate between stocastic and deterministic activities.

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Suresh Chand · Accepted Answer

A static mathematical model is a mathematical model that represents the logical view of the system in an equilibrium state. Such models are time-invariant. It is generally represented by basic algebraic equations. For example: Supply and demand relationship model of a market Consider a market model assuming the linear behavior of supply and demand with the price. Demand for a product will be low when the price is high and will be high when the price is low. Supply for a product will be high when the price is high and will be low when the price is low. If conditions remain stable, the price will settle to the point at which demand equals supply. The relations can be stated mathematically as: Q = a – bP S = c + dP S = Q where, S = supply, Q = demand and P = price The linear market model is shown below: Difference Between Stochastic and Deterministic Activities: Stochastic model/activity has one or more random variables as inputs. Random inputs lead to random outputs. E.g. Simulation of a bank involves random inter-arrival and service times. The deterministic model/activity contains no random variables. They have a known set of inputs which will result in a unique set of outputs. E.g. Arrival of patients to the Dentist at the scheduled appointment time.

What do you understandby static mathematical model? Explain with example. Differentiate between stocastic and deterministic activities.

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What do you understandby static mathematical model? Explain with example. Differentiate between stocastic and deterministic activities.

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