Self-explanatory financial planning models
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TL;DR
Some background on financial models is given, two sorts of explanations in this domain are discussed, and a procedure for explaining model results is presented.
Abstract
The purpose of computing is insight, not numbers.-- R. W. Hamming A financial model is a representation of the activities of a business in terms of quantitative relationships among variables that can help an analyst understand the financial consequences of past activities or assumed future activities. The equations comprising such models form a kind of knowledge base which can be used to generate explanations. In this paper we give some background on financial models, discuss two sorts of explanations in this domain, and present a procedure for explaining model results. Int reduction “It is February 1974 and as President of the Battery Company you are a little concerned at the results for 1973 that you have just received. Despite a 20 % increase in sales over 1972, profits have