<Li> Stochastic models are formulated using stochastic processes . They model economically observable values over time . Most of econometrics is based on statistics to formulate and test hypotheses about these processes or estimate parameters for them . A widely used bargaining class of simple econometric models popularized by Tinbergen and later Wold are autoregressive models, in which the stochastic process satisfies some relation between current and past values . Examples of these are autoregressive moving average models and related ones such as autoregressive conditional heteroskedasticity (ARCH) and GARCH models for the modelling of heteroskedasticity . </Li> <Li> Non-stochastic models may be purely qualitative (for example, relating to social choice theory) or quantitative (involving rationalization of financial variables, for example with hyperbolic coordinates, and / or specific forms of functional relationships between variables). In some cases economic predictions in a coincidence of a model merely assert the direction of movement of economic variables, and so the functional relationships are used only stoical in a qualitative sense: for example, if the price of an item increases, then the demand for that item will decrease . For such models, economists often use two - dimensional graphs instead of functions . </Li> <Li> Qualitative models--although almost all economic models involve some form of mathematical or quantitative analysis, qualitative models are occasionally used . One example is qualitative scenario planning in which possible future events are played out . Another example is non-numerical decision tree analysis . Qualitative models often suffer from lack of precision . </Li> <P> At a more practical level, quantitative modelling is applied to many areas of economics and several methodologies have evolved more or less independently of each other . As a result, no overall model taxonomy is naturally available . We can nonetheless provide a few examples that illustrate some particularly relevant points of model construction . </P>

Which of the following is a benefit of using models in decision making