How do model-driven decision support systems use what-if scenarios?

Created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

In a model-driven decision support system, what-if scenarios are used to analyze the potential outcomes of different variables within a preprogrammed model.1

During a session, an analyst or manager interacts with the system by inputting various values to test how changes affect projected results. For instance, when determining a product's selling price, a manager might input different price points, costs of goods, and promotional expenses into a marketing model. The system then calculates the projected sales volume for each scenario, allowing the user to compare the predicted results and select the most profitable option.1

By applying these models to specific data sets, decision makers can effectively simulate the impact of altering individual components within a system, providing a structured way to evaluate business strategies and forecast outcomes before committing to real-world actions.12