Reducing the Complexity of Interactive Variable Modeling in Business Simulations through Interpolation


  • Kenneth Goosen


This paper, which is prepared in response to a question raised by Steven Gold concerning use of the interpolation approach in modeling, describes how the interpolation approach achieves interaction among variables in a simulation. The theory underlying use of the approach is presented and a five-step algorithm is suggested for implementation. Application of the approach to nonmultiplicative models is also addressed. The paper concludes that based on the principle of creating interpolation arrays in terms of percentages, and given a starting base quantity, the interpolation methodology can effectively emulate the interaction of any type of equation that contains multiple interacting variables.