How is information inferred from mathematical formulas?
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I don’t know if this is the kind of formula and information you are interested in … but in the world of finance and business, mathematical formulas are way-pointers. It is less that the formula results provide a definitive answer to the question being studied, but rather that they numerically highlight things that show the analyst the most productive follow-up questions.
The most basic formula results are rankings best to worst, which can aid in setting priorities. It is not necessarily the ‘final answer’ as there may be other factors to consider beyond the numerical rank order of the results.
In an operational system, formulas can help determine which points are weakest. Formulas can be used in any business process but are especially common in manufacturing. Such as: -The most common point of failure in the manufacturing process, or in the product. -The process point where things slow down. -Is it less costly to re-work a problem in an item mid-process, or just discard it.
The formula isn’t the whole answer in business. It usually needs observation and talking to people to really understand why things aren’t working the best. The formula just helps to be sure that we are putting the time and resources into the problem that is the most productive to solve.
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