Economics

# Mathematical model

The mathematical model tries to establish the connection between the existing planning in a company to be able to carry out the programmed, you must know the devices that you will use, the handling of the computers for the physical and socioeconomic projection, facilitating its understanding.

Through these models it is possible to observe the updated situation of a region, from the extension of its potential geographic resources to its social economic conditions.

## How does the mathematical model work?

The models and techniques used may vary according to their complexity, social development, infrastructure conditions, and the like, for which it requires that:

• The forecast by having the statistical data available on the trends.
• Study of complicated models of territorial accounts.
• Distribution analysis.
• Know the inputs and products that will be studied.
• Economic basis for conducting simple studies.
• Linear programming analysis.

These aspects must be considered as they are conditioned by changes and variation in communication, as well as by own policies.

## Why is the mathematical model important?

The importance of using the mathematical model in a geographic space is that by doing this procedure it is possible to classify, order and structure the geography of a country, analyze regions, delimit areas, plan functional centers that have their services .

The mathematical model applied in economics consists of the decisions used by the company to find out the cause of the complications of everyday problems and situations such as:

• The existence of many difficulties.
• The problem is made up of one or more groups of individuals.
• There can be a staggering number of variables.
• Be subordinate to a high dynamic of negotiations.

## Classification of the mathematical model

In the classification of this model we can find the qualitative and the quantitative.

• Qualitative model : they are used to achieve the objectives and handle problems in a natural way to decide is based on intuition, opinions, facts and experiences.
• Quantitative model : uses techniques and research that contain linear programming , inventory models and waiting lines theory, allowing the command tool for effective decisions without omitting good judgment in the procedure.

## Examples

1. The mathematical models are considered representations of theories about the structural procedures, as well as the economy of a region to suit.
2.  It is the formal expression of mathematical language by means of which they investigate the relationships between the components of a model, as in natural processes.
3. It requires a system for ordered resolution in the form of an algorithm, especially if it has variations in space and time.

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