Ex Parte Eder - Page 5

            Appeal 2007-2745                                                                                  
            Application 09/761,671                                                                            

        1                         FACTS PERTINENT TO THE ISSUES                                               
        2       The following enumerated Findings of Fact (FF) are believed to be supported                   
        3   by a preponderance of the evidence.                                                               
        4       Claim Construction                                                                            
        5           01. Entropy minimization is an induction algorithm that, starting with                    
        6              nothing, adds variable to composite variable formula as long as they                   
        7              increase the explainability [sic] of result (Specification, 47:Table 23).              
        8           02. LaGrange is an induction algorithm that is designed to identify the                   
        9              behavior of dynamic systems and uses linear regression of the time                     
       10              derivatives of the system variables (Specification, 47:Table 23).                      
       11           03. Path Analysis is an induction algorithm that is essentially equivalent                
       12              to multiple linear regression that finds the least squares rule for more               
       13              than one predictor variable (Specification, 47:Table 23).                              
       14       Bielinski                                                                                     
       15           04. Bielinski is directed towards describing how Value Based                              
       16              Management (VBM), an advancement in discounted cash flow                               
       17              modeling, centers on what specific steps can be taken operationally and                
       18              strategically to add value to a target organization (Bielinski, 1:Abstract).           
       19           05. Bielinski describes how sensitivity analysis of past results offers clues             
       20              to what can be done in the future and which value drivers should receive               
       21              the most attention to achieve optimal rewards. The VBM technique                       
       22              allows the analyst to figure key decision making trade-offs, since                     
       23              attention to one driver may generate negative effects on others or 2 or                


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