A Quantitative Model applies mathematical techniques and statistical principles to represent the behavior of real-world systems quantitatively. These models are widely used in finance for asset pricing, risk management, and investment analysis. For example, a financial analyst may use a quantitative model to predict the impact of interest rates on bond prices. Quantitative models can range from simple formulas, like those relating a bond's price to its yield, to complex simulations involving large datasets and advanced computations.