Introduction to Economic Decision Making for Engineers

03 4045

Detailed description (English)

Syllabus in Hebrew and English

Lecture note sections to be covered (links to Lecture Notes below)

  • Time-Value of Money, pp.3-15: time-value of money. Done.
  • Time-Value of Money, pp.16-21: applications of time-money relations. Done.
  • Time-Value of Money, pp.22-25:  uncertain profit rate, i. Done
  • Time-Value of Money, pp.26-31: uncertain yearly profit, A. Done.
  • Time-Value of Money, pp.32-33: uncertain i and A. Skipped.
  • Time-Value of Money, pp.34-43: present and future worth with uncertainty. Done.
  • Time-Value of Money, pp.44-51: strategic uncertainty. Skipped.
  • Time-Value of Money, pp.52-56: opportuneness. Done.
  • Benefit-Cost Ratio,  pp.2-4: incommensurate benefits and costs. Done.
  • Benefit-Cost Ratio,  pp.5-18: monetizing the benefit-cost ratio. Done.
  • Benefit-Cost Ratio,  pp.19-32: BCR with incommensurate benefits and costs. Done.
  • Price Changes, p.4: consumer price index. Done.
  • Price Changes, pp.5-11: nominal and real prices. Done.
  • Price Changes, pp.12-23: engineering decisions with inflation. Done.
  • Price Changes, pp.24-35: foreign exchange rates. Done.
  • Portfolio management, pp.2-3: mean-variance analysis. Done.
  • Portfolio management, pp.4-9: info-gap extension of mean-variance analysis. Done.
  • Portfolio management, pp.10-18: value at risk. Done.
  • Forecasting, pp.2-19.
  • Special Topic: Behavioral response to feedback (ro02.pdf). Done briefly.

Lecture Notes

Money-Time Relationships and Their Applications

The Benefit-Cost Ratio

Price Changes Inflation and Foreign Exchange

Portfolio Management

Forecasting

Exercises

Homework exercises on Economic Decision Making for Engineers