When linearity does not apply there are several ways to resolve this:

• See whether an exponential pattern applies, for instance exponential preference behaviour;

• Use routines like the routine built in What's Best! that offer a local optimum;

• Carry out simulations using fixed values for the variables that would contribute to the non-linearity.

The first option is described in Chapter 7. The second option is described in this chapter. The third option is for instance used when not only the length and width of a building are considered endogenous but also the number of floors. By running the simulation several times, with each run having a different (fixed) number of floors, the optimal solution can be found.

Best Investment Tips and Ideas

Best Investment Tips and Ideas

The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.

Get My Free Ebook

Post a comment