Economic Decision Making Part 2

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

• Analyze and evaluate economic alternatives for engineering problems
• Apply decision-making techniques under uncertainty
• Use financial analysis tools like present worth and rate of return
• Interpret risk and uncertainty sensitivity analyses
• Build decision models using decision trees and statistical methods

• Basic computer and internet skills
• Ability to follow course instructions in English and complete short exercises