1. Run your model with the base case parameters, and hand in the plot. a. Briefly describe the models behavior. b. How well does your simulation match the historical data? Are the differences likely to be important if your goal is to understand the dynamics of process improvement and to design effective improvement programs? c. Does the stock of defects reach equilibrium after 9 months (the average defect elimination time)? Referring to the structures in your model, explain why or why not.

2. The stock reaches equilibrium when its inflows equal its outflows. Set up that equation and solve for the equilibrium defect rate in terms of the other parameters. a. What determines the equilibrium (final) level of defects? Why? b. Does the equilibrium defect rate depend on the average time required to eliminate defects? Why/Why not?

3. . Explore the sensitivity of your models results to the choice of the time step or dt.

. a. Change the time step for your model from 0.125 years to 0.0625 years. Do you see a substantial difference in the behavior? b. What happens when dt equals 0.5 years? Why does it behave as it does? c. What happens when dt equals 1 year? Why does the simulation behave this way?