DDMA Level II
Quantitative Modelling Skills glossary
Every term this guide defines, A to Z, each with the chapter that teaches it. Open it when a word in a question is unfamiliar, and test yourself on it in the last week: cover the definition and say it in one sentence.
12 terms from the free first chapter
E
- Econometric estimation
Applying statistical methods (often regression) to economic data to estimate relationships.
Taught in Quantitative modelling concepts
I
- Input-output analysis
Models how outputs of one part of a system become inputs to another, common in economic sector analysis.
Taught in Quantitative modelling concepts
L
- Line fitting
Finding the line that best represents a set of data points, the basis of simple linear regression.
Taught in Quantitative modelling concepts
- Linear models
Represent a relationship as a straight-line function of the inputs.
Taught in Quantitative modelling concepts
M
- Model
A simplified representation of a real system, built to understand, predict or optimise its behaviour.
Taught in Quantitative modelling concepts
- Multiple regression
Regression with more than one predictor variable.
Taught in Quantitative modelling concepts
P
- Partial modelling
Models one part of a system in detail while treating the rest as fixed or simplified.
Taught in Quantitative modelling concepts
- Probabilistic (stochastic) models
Incorporate randomness explicitly, producing a distribution of possible outcomes rather than one fixed answer.
Taught in Quantitative modelling concepts
Q
- Quantitative model
A model expressed in mathematical terms, using numbers, variables and equations rather than qualitative description.
Taught in Quantitative modelling concepts
R
- Regression models
Estimate the relationship between a dependent variable and one or more predictors (see the chapter on regression modelling).
Taught in Quantitative modelling concepts
S
- Simple analysis
Direct calculation from known relationships, without a formal statistical or optimisation model.
Taught in Quantitative modelling concepts
- Systems of equations
Modelling several interacting relationships together, solved simultaneously.
Taught in Quantitative modelling concepts
The full glossary adds every term from the other 5 chapters, A to Z, each with the chapter that teaches it.