The MODEL Procedure |

The *solution*, given the vector **k**, of the following nonlinear system of equations is the vector **u** that satisfies this equation:

A *simulation* is a set of solutions **u** for a specific sequence of vectors **k** .

Model simulation can be performed to do the following:

check how well the model predicts the actual values over the historical period

investigate the sensitivity of the solution to changes in the input values or parameters

examine the dynamic characteristics of the model

check the stability of the simultaneous solution

estimate the statistical distribution of the predicted values of the nonlinear model using Monte Carlo methods

By combining the various solution modes with different input data sets, model simulation can answer many different questions about the model. This section presents details of model simulation and solution.

Copyright © 2008 by SAS Institute Inc., Cary, NC, USA. All rights reserved.