From https://www.rose-hulman.edu/class/csse/csse221/201110/Projects/Simulation/Problem statement and proposed solution.htm

The following information may be useful to you in completing this portion of your team’s work. Skim this section, then refer back to it as necessary.

Problem Statements

Begin by describing a significant real world problem that your audience can relate to. Show a concrete example of this problem. This will serve as a "hook" to get the attention of your audience and convince them of the importance of the project. Next you want to focus in on the part of the problem you want to attack. So follow your example by focusing on a small but significant portion of the problem. This is the part that you are proposing to tackle.

Desired Outcome

Next, describe the outcome you are hoping to achieve through your solution. This may be somewhat redundant with the Problem Statement.

Proposed Solution

Having hooked your audience into the problem, now you want to paint a picture of what the world will be like when you solve the problem. Your proposed solution should relate the current situation to a desired result and describe the benefits that will accrue when the desired result is achieved. So, begin your proposed solution by briefly describing this desired result.

Note: now that you have described the final result, think of your iterative enhancement plan as showing your audience the steps by which you will lead them to that result.

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