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Course Description

As you develop a cash flow model, linearity is one of the characteristics for which you should strive. As you will see, there are distinct advantages to a linear model over a nonlinear model. But it will not always be possible to build an authentic model without allowing for some nonlinearities in either the objective function or constraints. You need to be able to identify ways to avoid nonlinearity when building your model, recognize when your model is unavoidably nonlinear, and correctly apply nonlinear solution methods. This lesson will introduce the concept of nonlinear optimization and give you an opportunity to become familiar with nonlinear models. You will look at how to use Solver and do a sensitivity analysis of a linear model. Seeing the power of the sensitivity analysis can have the effect of helping you appreciate some of what is given up when moving to a nonlinear model. Once you are in the realm of nonlinear models, it is possible to build in arbitrarily complex restrictions.

Benefits to the Learner

  • Focus on a scenario in which the addition of new constraints forces a linear model to become nonlinear
  • Practice applying multiple Solver methods to get the best possible optimization results from your model
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Type
self-paced (non-instructor led)
Dates
Mar 05, 2019 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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