This PPT slide, part of the 96-slide Dynamic Business Modeling PowerPoint presentation, presents a structured analysis of business logic choices concerning total commissions within the EZ-Trade framework. It highlights 3 distinct options for calculating total commissions, emphasizing the trade-offs between rigor and flexibility in modeling.

Option 1 indicates a straightforward approach where total commissions are derived solely from historical data and growth assumptions, without any additional drivers. This method prioritizes simplicity, but may lack depth in predictive capability.

Option 2 introduces a more complex model, incorporating client volume and average commission per share as key drivers. This option suggests a more nuanced understanding of the factors influencing total commissions, allowing for a more dynamic projection. The slide notes that this option relies on historical data for both client volume and commission rates, which could enhance accuracy, but also introduces potential variability based on market conditions.

Option 3 builds on the previous model by adding client volume market share as an additional driver. This approach further refines the calculation of total commissions, integrating market dynamics into the model. By considering market share, this option aims to provide a more comprehensive view of potential commissions, although it may require more intricate data management and assumptions.

The slide effectively illustrates how different modeling choices can impact the quality and quantity of data used in projections. It serves as a valuable guide for decision-makers looking to balance simplicity with the need for detailed analysis in their commission calculations.

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