Introduction to Economic Decision Making for Engineers

03 4045

Detailed description (English)

Syllabus in Hebrew and English

Midterm exam grades

Midterm exam questions (Hebrew)

Midterm exam questions and solutions: 44 a, b, e, f (English)

Moed alef grades.

Moef alef and bet grades.

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

  • Time-Value of Money, pp.3-15: time-value of money. Parts I and II 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. Done.
  • Time-Value of Money, pp.34-43: present and future worth with uncertainty. Done.
  • Time-Value of Money, pp.44-51: strategic uncertainty. Done.
  • 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. (skipped pp.10-18)
  • 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. Started.
  • Forecasting, pp.2-19.
  • Special Topic: Behavioral response to feedback (ro02.pdf).

Lecture Notes

Money-Time Relationships and Their Applications

The Benefit-Cost Ratio

Price Changes Inflation and Foreign Exchange

Portfolio Management



Homework exercises on Economic Decision Making for Engineers

Homework exercises on  Info-Gap Risks in Project Management

Homework #1: Problems 1-5. Discussed 25.3.2019. Solution.

Homework #2: Problems 9, 11. Discussed 8.4.2019. Solution.

Homework #3: Problem 12. Discussed 15.4.2019. Solution.

Homework #4: Problem 28. Discussed 29.4.2019. Solution.

Homework #5: Problem 13, a,b . Discussed 13.5.2019. Solution.

Homework # 6: Problem 15. Discussed 20.5.2019. Solution.

Homework # 7: Problem 27. To be discussed 3.6.2019. Solution.

Homework # 8: Problems 18-20. Discussed 10.6.2019. Solution.

Homework # 9: Problems 35, 36. Discussed 17.6.2019. Solution.

Homework #10: Problems 5, 6, 4a in Info-Gap Risks in Project Management. Discussed 24.6.2019. Statements and solutions.