The application of Compensative GM(1,h) Model in Industry investment analysis of Heilongjiang Province

Because there are so many influencing factors to the industry investment system, it is a hard task to take all the random characteristics into consideration when analyze the construction of the investment system. This paper applies the compensative GM(1,h) Model, a main model to simulate in the grey system theory, to analyze the investment-industry and economic system. According to its feature, the parameters of the system are obtained via the principle of least square method. In the numerical experiment, the model simulates the GDP values of Heilongjiang Province from 1991 to 2003, and the results show that the Compensative GM(1,h) Model has a high precision, and the average relative error is 5.98%. Most of the errors are within the range of 4%.