A management science consultant develops a mathematical formula which calculates the annual profitability of different project proposals. To see if the model is accurate, the consultant uses historical data to calculate the predicted profitability of a number of projects, then compares the predicted profitability with the actual profitability that was observed. Which of the steps of a management science project was the consultant performing?

Multiple Choice

Develop a computer$-$based procedure for deriving problem solutions.

Formulate a model to represent the problem.

Define the problem and gather data.

Apply the model to analyze the problem and develop recommendations.

Test the model and refine it as needed.