A model allows you to try out different scenarios to see what would happen if you made a change without any of the risks of actually having to do them in real life.

A model tries to be as close as possible to the real-life situation but its accuracy depends on how carefully it was built.

Models can be as simple as a basic spreadsheet or as complex as one used by the Chancellor of the Exchequer to test out possible changes for the Budget.

Challenge see if you can find out one extra fact on this topic that we haven't already told you

Click on this link: Spreadsheet Modelling


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