Week 3 Assignment- The Four Basic Components of Financial Modeling

The purpose of this assignment is to help you understand and apply the four core components of financial modeling. By defining each component, explaining its role, and analyzing how it supports forecasting, you will learn how businesses use modeling to plan for future scenarios and make informed decisions.

Explore the four basic components of financial modeling and analyze how each one helps forecast and prepare for potential future business scenarios.

For each of the four components:

• Define the component in your own words
• Explain its purpose in financial modeling
• Describe how it’s used to anticipate future outcomes

Provide a specific, realistic scenario where this component would play a key role (e.g., launching a new product, cost-cutting decisions, forecasting seasonal sales).

Notes:

1. This paper must be formatted in APA Style 7th edition.
2. Including a title page and reference page
3. Please refer to the written assignment rubric on the start here tab for this paper.
4. This paper is due Sunday, January 25, 2026 by 11:59 PM EST
5. This paper will need to be at least 2-3 pages double spaced, minus the title and reference sections

Week 4 – Scenario, Sensitivity, and Simulation Written Assignment

The purpose of this assignment is to introduce you to three key risk analysis toolsscenario analysis, sensitivity analysis, and simulation modeling. By applying them to a real company, you’ll learn how businesses assess uncertainty, test assumptions, and make more informed strategic decisions.

Business leaders rarely have the luxury of certainty.

The best decisions often come down to asking: “What could happen?” and “How would that affect us?”

In this assignment, you’ll dive into three powerful tools that help answer those questions: Scenario analysis, sensitivity analysis, and simulation modeling.

Choose a real companyeither the one you analyzed in Week 2, or a different company that interests youand explore the risks it faces using these three techniques.

• Define the concept in your own words
• Explain how it helps businesses assess risk
• Create or describe a specific example of how this tool could be applied to your chosen company
• What decisions might it support?
• What assumptions are involved?
• What kind of outcome might it reveal?

Notes:

1. This paper must be formatted in APA Style 7th edition.
2. Including a title page and reference page.
3. Please refer to the written assignment rubric on the start here tab for this paper.
4. This paper is due Sunday, February 01, 2026 by 11:59 PM EST.
5. You must use at least 3 scholarly articles.
6. This paper will need to be at least 2-3 pages double spaced, minus the title and reference sections.
7. For help with APA formatting please see the writing center.