Distributions and Timeseries

In this tutorial we will discuss how to use three of the more complex nodes, the Prior Value node, the Timeseries node and the Distribution node.

This tutorial will look at how to fit the three nodes together to create a Driver Model that can predict future values. The Driver Model will predict the amount left to pay off on a mortgage for a house.

This model is based off the following scenario:

A finance broker is investigating a home loan for a client. The amount they will have to borrow from the bank with be $160000. The broker has calculated that the repayments each month will be $736, at a variable interest rate of 3.76% per annum which will likely change at a normal rate of 3 std. Before the broker presents this option to the client they want to predict what the loan figure will look like after 12 repayments, just over a year since taking out the loan.

For users wishing to complete this tutorial you will need to create a new Application from the APPS screen and delete the nodes already on the workspace.