Dear Lisa,
sorry for only coming back to you now - to define an application model, you need to have both available - dynamic modeltype (and at least one instance) and an implementation of a static one (and at least one instance). When you have both defined, you can select the models and provide a name to create an "Application model".

In case you want to see that in action, please do not hesitate to get the BPMN sample (http://www.adoxx.org/live/implementextent-bpmn-adoxx), import it and create some valid example models and run the algorithms!

Best regards,
Wilfrid