Self-Explanatory Financial Planning Models

Donald W. Kosy, Ben P. Wise

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.

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