Numi Advisory has advised over 200 clients by providing career coaching, mock interviews, and resume reviews for people seeking jobs in equity research and investment management (full bio at the bottom of this article).
Few things in this world strike as much terror into the hearts of eager bankers looking to move to the buy-side as the infamous hedge fund case study.
Protesters from the Occupy movement failing to shower for months at a time, or Peter Jackson deciding to split the remaining two Hobbit movies into 19 movies might also be scary - but even they pale in comparison.
But that's why you read this site: to learn how to swat away your competition like flies, overcome the biggest challenges, and win offers (you'll have to look elsewhere for help with Peter Jackson).
Today we're starting a multi-part series on hedge fund case studies, and I'm going to give away for free more actionable information, tips, and real examples than what other training providers would charge you $10,000+ for.
As The Joker might say, "It's not about money… it's about sending a message."
We'll leave out the second part of that quote about everything burning, at least until we reach the end of this series.
Our interviewee has had a ton of experience in the finance industry, ranging from equity research to private equity to hedge funds - and I convinced him to share all his best tips with you.
He contributed the interviews on equity research over a year ago, and this series will be even better.
Let's jump right into it:
Assumptions & Background Information
Q: So we haven't sat down for an interview since that series on equity research. What's new?
A: Sure - since the last time we chatted, I've graduated from business school and have been through the recruiting process at hedge funds. I am currently an analyst at a long/short equity fund.
I'm still helping clients break into equity research, private equity, and hedge funds as well.
In the past, I've worked in private equity, equity research, and hedge funds (both internships and full-time), and I've completed case studies at every step along the way - so I wanted to sit down with you and explain the process, why it's so important for buy-side recruiting, and how to make your own case studies successful.
Why Do Case Studies Matter So Much in Hedge Fund Interviews?
Q: Well, sounds like you've been quite busy (to say the least).
Let's start from the beginning: why do case studies matter so much in hedge fund interviews?
A: Here are the top 3 reasons:
- Case studies are what you really do on the job - you generate investment ideas, present them to the PM, and aim to profit from your ideas while mitigating risk. Often, you're tasked with analyzing an investment opportunity with minimal guidance and hand-holding; therefore, it's up to you to use your intellectual horsepower and investment acumen to figure out whether a particular asset is a good investment.
- They're a way to level the playing field and stand out against everyone else with high grades from Harvard/Wharton/Stanford. Lots of people have great pedigrees, but few can invest successfully.
- You will get them as part of the recruiting process at every single hedge fund, guaranteed.
Also, very, very few candidates actually customize their stock pitch and/or case study to the specific strategy that a fund uses… so even by using relatively simple strategies, you can stand out.
As you always say, don't overestimate the competition.
Q: So it seems like these case studies could also be a way to break in if you're coming from a very different or unconventional background?
A: Yes. Unlike large banks that run very standardized recruiting processes and look for very standard types of candidates, many hedge funds are more open about who they'll speak to… IF you can prove that you have solid investment ideas and that you're passionate about investing.
The industry has gotten super-competitive over the past 10-15 years, and it is generally getting smaller - but if you can make a lot of money for a potential employer, there will always be room for you.
In practice, of course, most people at hedge funds still come from investment banking, equity research, or trading backgrounds - but especially at smaller funds, they care more about your P&L than your pedigree.
What Are Hedge Fund Case Studies?
Q: Yeah, that matches what I've seen from clients going through the HF recruiting process.
Before we move on, can you tell us what exactly a "case study" is?
A: Sure, I should probably define that one at some point…
In hedge fund interviews, "case studies" are very informal. 90% of the time they will tell you:
- Come up with an investment idea you think is interesting, present it to us, and back it up with quantitative and qualitative support.
And… that's it.
It's up to you to come up with the structure, pick the industry and find the company, and anticipate their key questions in advance.
Unlike private equity case studies, these case studies are far less structured and they want to see how well you can function without much direction.
Occasionally, you will get case studies where they give you a specific company and then give you a few hours to look at its financial statements, filings, and industry research and form your own opinion - but "open-ended" case studies tend to dominate.
Q: So unlike PE case studies, where you're focused on IRR and determining whether or not buying out a company could generate your targeted return, with HF case studies it sounds like it's more about valuation.
A: Partially, yes.
Valuation is more important in these open-ended case studies because you can pick pretty much any company - it's not like a leveraged buyout case study where they'll give you a company or deal and you're constrained by that.
But the main difference is that HF case studies and public markets investing in general are all about asymmetric risk profiles: cases where the upside potential is significantly greater than the downside potential.
So you're not necessarily targeting a certain IRR - instead, you're thinking: "This stock is currently at $25.00 per share. I think there's a 75% chance it could increase to $30.00, and only a 25% chance that it will fall to $20.00, so I recommend investing because…"
The other big difference is that catalysts are much more important in these case studies - it's not enough to estimate the probabilities and argue what a stock's "expected value" is.
You need to say, "I think it will change because of Event X," where Event X is something like a new customer, a new product, regulatory changes, a competitor's strategy, a refinancing or change in capital structure, or anything else you could think of.
Finally, risk factors and mitigating risk are essential for hedge fund case studies: you still consider them in PE case studies, but often you can't make extremely specific recommendations to mitigate the risk when you're acquiring an entire company.
Q: Awesome. We're going to delve into the structure of these stock pitches and case studies in Part 2.
But just to get everyone thinking about it, can you explain how you'd usually structure your recommendations?
A: Sure… we'll go into this in more detail in the next part of the series, but here's what I usually use:
1) Recommendation: "Neutral" recommendations are not ideal, so are you long or short this stock? What do you think it's worth and how much would you pay for it?
2) Company Background: Introduce what the company does and state what its current market cap and valuation multiples are.
3) Your Investment Thesis: Give 2-3 points about why you think the stock is price imperfectly - these can be both quantitative and qualitative factors, but they must be specific to the company (i.e. don't say, "Well, the economy could crash…"). This will be the bulk of your presentation or write-up.
4) Catalysts: So you think the stock is priced imperfectly and is worth $X when its current share price is $Y… but what will push it to $X? Many people miss this part completely, which can sink your chances.
5) Valuation: Support your view of what the company is worth by using the standard methodologies: public comps, precedent transactions, DCF or other intrinsic value analyses, and so on.
6) Risk Factors and How to Mitigate Them: Remember that hedge funds are always looking for investments with asymmetric risk profiles. All investments have potential downsides as well, and in this section you discuss those and explain that, while they exist, there's still a greater chance of your own thesis being true.
In that last part on Risk Factors, you also explain how to hedge against the possibility that you're wrong. Much of the Q&A that takes place after you make your pitch will revolve around understanding potential sources of downside.
Q: Awesome… we'll go into those points in more detail later, but any more thoughts before we move on?
A: Not really - the 2 most overlooked points are the catalysts and risk factors you select, so if you're preparing to pitch stocks or you're getting ready for hedge fund interviews right now, you need to think about those in advance for any idea you come up with.
My only other point is that you must be very confident in your recommendation and explanation.
Many candidates go into interviews without a clear conviction behind their ideas - which is the fastest way to fail. Your analysis can be spot on, but if you can't convince your portfolio manager to put money behind your idea, you won't have a long-lasting career in this industry.
When and Where Will You Get Them?
Q: OK, so where do these case studies usually come up in the recruiting process?
A: It's not standardized - sometimes they'll give you case studies in advance, and sometimes they'll be in later rounds of the recruiting process.
Often the bigger funds will ask you to complete them upfront as an initial screen, but they could still ask you to complete similar case studies later on as you've advanced through a few rounds of recruiting.
Also at bigger funds, you'll meet more people and they may mix it up by giving you both the "open-ended case studies" and the ones where they ask you to look at a specific company and make an investment recommendation.
I've heard some people having to complete as many as 6 or 8 case studies during the recruiting process, but I personally think that is excessive. Unless you really want to work at that fund or don't have other options, you should consider pushing back if this happens.
The process and structure are the same regardless of whether you get an "open-ended case study" or one with a specific company, but you save a lot of time with the latter type of case study.
Q: Speaking of time, how much time do you have to complete these case studies?
A: You need to ask them for an explicit time limit. Many people hear something like, "Take your time!" because hedge funds tend to be informal, and then they make the mistake of thinking they really can "take their time."
But that's the wrong approach - when they say something like that, your next question has to be: "When do you need it by? Do you have any formatting and presentation requirements?"
Generally it's in your best interest to respond to them within a few days at the most - and yes, you will be working like a madman during those few days, especially if you're also working full-time.
It takes time to comb through filings, research competitors, call suppliers and customers, and so on - so it's almost impossible to do a thorough job with all of those in a day or less.
Differences at Different Funds?
Q: So far we've been focused on pitching "companies" and making long/short recommendations, but what if it's not a long/short equity fund?
What types of case studies would you encounter at a global macro, credit, merger arbitrage, or distressed fund?
A: You'll still get case studies there, but you'll analyze different assets: currencies, debt, or distressed companies rather than healthy ones.
With something like merger arbitrage (or anything else that's event-driven), you can still apply the same framework but the catalyst becomes a much more central part of your recommendation.
The risk factors and mitigants will also differ: at long/short equity funds, the main risk is the stock price moving in the opposite direction, but at an event-driven fund the main risk might be the event not happening or not happening in the way you expected.
At a distressed fund, the main risk might be the company going bankrupt and not being able to sell off its assets for the expected price.
You could still mitigate some of these risks with stop losses or protective options, but you need to think through how the investment strategy of the fund will result in different types of risks.
Q: Great! Thanks for explaining that. Anything else to add in terms of different types of case studies at different fund types?
A: Let's see… I focused on long/short equity funds and long-only funds in my recruiting, and I generally found that long/short equity funds asked for case study write-ups more often.
The long-only funds still asked for stock pitches, but sometimes it was more informal and just consisted of a brief presentation.
Also, make yourself aware of the firm's specific strategy within the overall category… for example, if it's a fund that runs a pair trade, market-neutral strategy, you should come up with trades that have a well-thought-out long and short idea.
They won't tell you that, of course, but you significantly improve your chances if you match your recommendations to the specifics of their strategy.
What (Else) Hedge Funds Really Want to See
Q: Yeah, those are all great points.
Previous interviewees have mentioned that hedge funds still care about your story, knowledge of the markets, passion for investing, and so on - anything you want to add to that list?
A: Two things I'll add:
- Many sell-siders (investment bankers, more specifically) moving over to hedge funds have a very difficult time explaining how their past experience is relevant… you can't just "state the facts," you need to be explicit about how your skill set will be useful at the fund. Developing a career at a hedge fund is about being an investor, not just someone who's quick with building models and fancy PowerPoint presentations.
- Also, many sell-siders have very weak or nonexistent opinions on their previous clients and deals - this is a big stumbling block because you can't just "lay out the facts" of what you did. Effectively, you need to make investment recommendations on your previous clients and deals.
Q: Those are both great points. I see #2 with our coaching clients all the time - they just describe the process behind a deal instead of saying whether or not they think it was a good idea in the first place.
Can you explain more about what you mean for #1?
A: Sure… let's say you're in an interview and say, "In investment banking, I've learned how to run comps and build M&A models. I think those are going to be very useful wherever else I go."
That's one way to say it, but you're not explaining how your skills would help the PM make money. It's all features and no benefits.
Instead of that description above, you could say, "After a few years in investment banking, I feel very confident in my valuation and M&A modeling skills, and I've used them to think about event-driven investing after being exposed to a few M&A deals that almost closed but then fell apart, and vice versa. I'm confident I could use these same skills to analyze pending M&A deals for your firm and help you make money by finding the right opportunities to bet on or bet against."
You need to get yourself in the "What's in it for them?" mindset. You can't go into an interview without considering how you'll help the interviewer make money and what kind of ROI he'll get by hiring you.
Getting Into the Case Study Mindset
Q: Agreed - that's why it's one of my favorite topics to cover on the site. I don't think I'll ever get tired of repeating those points.
Before we jump into structuring your case study and the technical side in more detail, any more thoughts on how to get into the right mindset for interviews?
A: Your biggest obstacle moving over from the sell-side will be the failure to consider the potential downside and the risk factors.
So before you even start writing your recommendation, check the most bullish equity research report if you're making a short recommendation.
And check the most bearish equity research report if you're making a long recommendation, just to verify that you've considered the most obvious points already.
NOTE ABOUT EQUITY RESEARCH:
Just to clarify this comment above: do NOT rely on equity research to form your investment thesis. Instead, you want to use it as a "sanity check" and possibly as a way to find some of your data.
But as you'll see in Part 2, you should NOT get your actual investment ideas directly from the research, and you shouldn't rely on it to back up your thesis.
Q: You're assuming that the "sell" rating actually exists.
It seems like it's an endangered species sometimes.
A: Yeah. Maybe someday it will go the way of the blue whale.
But until that happens, it's worth considering a wide range of views on the company. In banking and even many research teams, you're always focused on "robust growth expectations" and showing off how great the client is.
You need to take completely the opposite view at hedge funds, so you should get yourself into the mindset long before you start writing your own case study.
I can't overstate the importance of having a clear view about margin of safety for a particular investment, and to get there, you need to figure out what the risks are and why you still think the risk/reward profile is favorable toward the "reward" side.
Also, to go back to your point, you don't actually need to find a report with a "sell" rating - even a less optimistic "hold" or "buy" report could work.
Q: Great tips. So, let's move into the structure in more detail, how to find ideas, and the technical side of case studies…
A: Wait, isn't that coming up next time?
Q: Good point - stay tuned! And thanks for your time.
A: My pleasure.
Coming Up Next
When we do a multi-part series here, we don't mess around. Here's what's coming up next in Parts 2, 3, and 4:
- Part 1 - Hedge Fund Case Study Overview
- Part 2 - How to Generate Investment Ideas and Research and Structure Your Case Study
- Part 3 - How to Model and Value Companies and Deals for Use in Your Case Studies
- Part 4 - Walkthrough of an Actual Hedge Fund Case Study / Pitch That is Lacking and How to Give it a Winning Makeover
Let the fun begin.
Numi Advisory has advised over 200 clients by providing career coaching, mock interviews, and resume reviews for people seeking jobs in equity research and investment management. With extensive investment experience in equity research and private equity and now working as an analyst at a long/short equity hedge fund, Numi has unparalleled insights into the recruiting process and advancing on the job.
Numi customizes solutions to each client's unique background and career aspirations, and teaches clients the most efficient and impactful methods to achieve successful results on their career search. He has helped place over 50 candidates in leading buy-side and sell-side jobs. For more information on career services and client testimonials, please contact firstname.lastname@example.org, or visit Numi's LinkedIn page.
Presentation on theme: "CHAPTER 12 OBJECT-ORIENTED ANALYSIS. Overview Extracting the entity classes Object-oriented analysis: The elevator problem case study Functional modeling."— Presentation transcript:
1 CHAPTER 12 OBJECT-ORIENTED ANALYSIS
2 Overview Extracting the entity classes Object-oriented analysis: The elevator problem case study Functional modeling Entity class modeling Dynamic modeling The test workflow: Object-oriented analysis
3 Overview (contd) Extracting the boundary and control classes The initial functional model: The MSG Foundation case study The initial class diagram The initial dynamic model Extracting the boundary classes
4 Overview (contd) Refining the use cases: The MSG Foundation case study Use-case realization: The MSG Foundation case study Incrementing the class diagram: The MSG Foundation case study The specification document in the Unified Process More on actors and use cases
5 Object-Oriented Analysis OOA is a semiformal analysis technique for the object-oriented paradigm –There are over 60 equivalent techniques –Today, the Unified Process is the only viable alternative
6 Object-oriented analysis During this workflow –The classes are extracted Remark –Unified process does not describe how classes are to be extracted –The Unified Process assumes knowledge of class extraction
7 12.1 The Analysis Workflow The analysis workflow has two aims –Obtain a deeper understanding of the requirements –Describe them in a way that will result in a maintainable design and implementation (for the design workflow)
8 The Analysis Workflow Use case driven There are three types of classes: –Entity classes –Boundary classes –Control classes
9 The Analysis Workflow Entity class –Models long-lived information Examples: –Account Class, Investment Class Boundary class –Models the interaction between the product and the environment –A boundary class is generally associated with input or output Examples: –Investments Report Class, Mortgages Report Class
10 UML Notation for These Three Class Types Control class –Models complex computations and algorithms Example: –Estimate Funds for Week Class
11 UML entity class
12 12.2 Extracting the Entity Classes Perform the following three steps incrementally and iteratively –Functional modeling Present scenarios of all the use cases (a scenario is an instance of a use case) –Entity Class modeling Determine the entity classes and their attributes Determine the interrelationships and interactions between the entity classes Present this information in the form of a class diagram –Dynamic modeling Determine the operations performed by or to each entity class Present this information in the form of a statechart
13 12.3 Object-Oriented Analysis: The Elevator Problem Case Study A product is to be installed to control n elevators in a building with m floors. The problem concerns the logic required to move elevators between floors according to the following constraints: 1.Each elevator has a set of m buttons, one for each floor. These illuminate when pressed and cause the elevator to visit the corresponding floor. The illumination is canceled when the corresponding floor is visited by the elevator 2.Each floor, except the first and the top floor, has two buttons, one to request an up-elevator, one to request a down- elevator. These buttons illuminate when pressed. The illumination is canceled when an elevator visits the floor, then moves in the desired direction 3.If an elevator has no requests, it remains at its current floor with its doors closed
14 12.4 Functional Modeling: The Elevator Problem Case Study A use case describes the interaction between –The product, and –The actors (external users)
15 Use Cases For the elevator problem, there are only two possible use cases –Press an Elevator Button, and –Press a Floor Button Figure 12.2
16 Scenarios A use case provides a generic description of the overall functionality A scenario is an instance of a use case Sufficient scenarios need to be studied to get a comprehensive insight into the target product being modeled
17 Normal Scenario: Elevator Problem Figure 12.3
18 Exception Scenario: Elevator Problem Figure 12.4
19 12.5 Entity Class Modeling : The Elevator Problem Case Study Extract classes and their attributes –Represent them using a UML diagram One alternative: Deduce the classes from use cases and their scenarios –Possible danger: Often there are many scenarios, and hence –Too many candidate classes Other alternatives: –CRC cards (if you have domain knowledge) –Noun extraction
20 12.5.1 Noun Extraction A two-stage process Stage 1. Concise problem definition –Describe the software product in single paragraph –Buttons in elevators and on the floors control the movement of n elevators in a building with m floors. Buttons illuminate when pressed to request the elevator to stop at a specific floor; the illumination is canceled when the request has been satisfied. When an elevator has no requests, it remains at its current floor with its doors closed
21 Noun Extraction (contd) Stage 2. Identify the nouns –Identify the nouns in the informal strategy –Buttons in elevators and on the floors control the movement of n elevators in a building with m floors. Buttons illuminate when pressed to request the elevator to stop at a specific floor; the illumination is canceled when the request has been satisfied. When an elevator has no requests, it remains at its current floor with its doors closed Use the nouns as candidate classes
22 Noun Extraction (contd) Nouns –button, elevator, floor, movement, building, illumination, request, door –floor, building, door are outside the problem boundary — exclude –movement, illumination, request are abstract nouns — exclude (they may become attributes) Candidate classes: –Elevator Class and Button Class Subclasses: –Elevator Button Class and Floor Button Class
23 First Iteration of Class Diagram Figure 12.5
24 First Iteration of Class Diagram Problem –Buttons do not communicate directly with elevators –We need an additional class: Elevator Controller Class
25 Second Iteration of Class Diagram All relationships are now 1-to-n –This makes design and implementati on easier Figure 12.6
26 Noun extraction exercise By using Microsoft Visual Studio 2005, write a C++ object- oriented program to implement the game “Get the Card ( 冚 棉胎 )”. At the beginning of the game, a stack of 52 cards is prepared and shuffled randomly. However, your program needs to make a special arrangement that, at 5 randomly chosen locations in the stack, two consecutive cards will have the same number. When the player starts to play the game, the cards in the stack are shown one by one for a short period of time. If the player finds those two consecutive cards having the same number, he/she should click the picture “Pick It” within a short period of time. A successful “Pick It” should be recorded. If the player clicks “Pick It” wrongly, marks should be deducted. The game will end when all cards are shown. For this game, the player can choose different levels of difficulty by adjusting the duration for showing a card. Different levels of difficulty will have different amount of scores. Hence, besides the number of cards obtained, the scores of a player obtained should also be recorded in a file.
27 12.5.2 CRC Cards Used since 1989 for OOA For each class, development team fill in a card showing –Name of Class –Functionality (Responsibility) –List of classes it invokes (Collaboration) Now CRC cards are automated (CASE tool component)
28 CRC Cards (contd) Strength –When acted out by team members, CRC cards are a powerful tool for highlighting missing or incorrect items Weakness –If CRC cards are used to identify entity classes, domain expertise is needed –As in CRC, classes are already identified!
29 12.6 Dynamic Modeling: The Elevator Problem Case Study Produce a UML statechart State, event, and predicate are distributed over the statechart Less formal comparing to FSM Figure 12.7
30 Dynamic Modeling: Elevator Problem (contd) This UML statechart is equivalent to the state transition diagram of Figures 11.15 through 11.17 This is shown by considering specific scenarios In fact, a statechart is constructed by modeling the events of the scenarios
31 12.7 The Test Workflow: Object- Oriented Analysis CRC cards are an excellent testing technique Figure 12.8
32 CRC Cards Consider responsibility –1.Turn on elevator button This is totally inappropriate for the object-oriented paradigm –Responsibility-driven design has been ignored (the button class are responsible for turning themselves on or off) –Information hiding has been ignored Responsibility 1.Turn on elevator button should be 1.Send message to Elevator Button Class to turn itself on
33 CRC Cards (contd) Also, a class has been overlooked – there should be an additional class The elevator doors have a state that changes during execution (class characteristic) –Add class Elevator Doors Class –Safety considerations Modify the CRC card
34 Second Iteration of the CRC Card Figure 12.9
35 CRC Cards (contd) Having modified the class diagram, reconsider the –Use-case diagram (no change) –Class diagram (see the next slide) –Statecharts –Scenarios (see the slide after the next slide)
36 Third Iteration of Class Diagram Figure 12.10
37 Second Iteration of the Normal Scenario: Figure 12.11
38 12.8 Extracting the Boundary and Control Classes Each –Input screen, –Output screen, and –Report is modeled by its own boundary class Example – the boundary class modeling a printed report incorporates all the various data items that can be included in the report and the various operations carried out to print the report Each nontrivial computation is modeled by a control class
39 12.9 The Initial Functional Model: MSG Foundation l Recall the seventh iteration of the use-case diagram Figure 12.12
40 Use Case Manage a Mortgage One possible extended scenario Figure 12.13
41 Use Case Manage a Mortgage (contd) A second extended scenario Figure 12.14
42 Use Case Estimate Funds Available for Week One possible scenario Figure 12.15
43 Use Case Produce a Report One possible scenario Another scenario
44 12.10 The Initial Class Diagram: MSG Foundation The aim of entity modeling step is to extract the entity classes, determine their interrelationships, and find their attributes Usually, the best way to begin this step is to use the two-stage noun extraction method
45 Noun Extraction: MSG Foundation Stage 1: Describe the information system in a single paragraph –Weekly reports are to be printed showing how much money is available for mortgages. In addition, lists of investments and mortgages must be printed on demand.
46 Noun Extraction: MSG Foundation (contd) Stage 2: Identify the nouns in this paragraph –Weekly reports are to be printed showing how much money is available for mortgages. In addition, lists of investments and mortgages must be printed on demand. The nouns are report, money, mortgage, list, and investment
47 Noun Extraction: MSG Foundation (contd) Nouns report and list are not long lived, so they are unlikely to be entity classes (report will surely turn out to be a boundary class) money is an abstract noun This leaves two candidate entity classes –Mortgage Class and Investment Class
48 First Iteration of the Initial Class Diagram First Iteration of the Initial Class Diagram Figure 12.18
49 Second Iteration of the Initial Class Diagram Operations performed on the two entity classes are likely to be very similar –Insertions, deletions, and modifications –All members of both entity classes have to be printed on demand Mortgage Class and Investment Class should be subclasses of a superclass called Asset Class
50 Second Iteration of Initial Class Diagram (contd) Figure 12.19
51 Back to the Requirements Workflow The current five use cases include Manage a Mortgage and Manage an Investment These two can now be combined into a single use case, Manage an Asset
52 Eighth Iteration of the Use- Case Diagram The new use case is shaded Figure 12.20
53 Initial Class Diagram: MSG Foundation (contd) Finally, we add the attributes of each class to the class diagram –For the MSG Foundation case study, the result is shown on the next slide The empty rectangle at the bottom of each box will later be filled with the operations of that class
54 Second Iteration of Initial Class Diagram (contd) Figure 12.21
55 Iteration and Incrementation The phrase “iterate and increment” also includes the possibility of having to decrement what has been developed to date –A mistake may have been made, and backtracking is needed –As a consequence of reorganizing the UML models, one or more artifacts may have become superfluous ( 過剩的 ; 多餘的, 不必要的 )
56 12.11 The Initial Dynamic Model: MSG Foundation Dynamic modeling is the third step in extracting the entity classes A statechart is constructed that reflects all the operations performed by or to the software product The operations are determined from the scenarios
57 Initial Dynamic Model: MSG Foundation (contd) Figure 12.22
58 Initial Dynamic Model: MSG Foundation (contd) The statechart reflects the operations of the complete MSG Foundation information system –The solid circle on the top left represents the initial state, the starting point of the statechart –The white circle containing the small black circle on the top right represents the final state –States other than the initial and final states are represented by rectangles with rounded corners –The arrows represent possible transitions from state to state
59 Initial Dynamic Model: MSG Foundation (contd) In state MSG Foundation Information System Loop, one of five events can occur An MSG staff member can issue one of five commands: –estimate funds for the week –manage an asset –update estimated annual operating expenses –produce a report, or –quit