With a Simulation Model a real situation is represented as a simplified mathematical model. In situations where there is a lot of uncertainty, different scenarios can be tested without implementing the scenarios in real life. The mathematical model should represent the complexity of the real-world situation. In this way, results that are gained on the simulation model can be translated to the real situations, and on the base of this, decisions can be made.
Generally, a simulation is cheaper and safer than conducting an experiment in the real-world. Additionally, a simulation can run in a fraction of the real time. Lastly, the environment in which the different conditions are tested stays the same. When one is for example testing which bike is faster on a rainy day, the weather, road and driver conditions must be exactly the same in both rides, otherwise the two cannot precisely be compared. In a simulation the conditions can be set exactly the same and a perfect comparison can be made.