Economic Decision Making Part 1

Explores economic modeling and analysis techniques for selecting alternatives from potential solutions to an engineering problem. Considers measures of merit, such as present worth, annual worth, rate of return, and benefit/cost techniques. Examines recent techniques of economic analysis, especially the tools of decision-making. Explores decisions under uncertainty. Studies the causes of risk and uncertainty and examines ways to change and influence the degree of risk and uncertainty through sensitivity analysis, expectation-variance criterion, decision tree analysis, statistical decision techniques, and multiple attribute decision-making through group case studies

• Apply economic modeling to engineering alternatives
• Use economic merit measures for decision-making
• Analyze decisions under uncertainty and risk
• Perform sensitivity and expectation-variance analysis
• Utilize decision tree and statistical decision techniques

• Basic computer and internet skills
• Ability to read course instructions in English and complete short practice activities