EMSE 388:

Syllabus
EMSE 388.10
(Spring 2007)

Introduction

Course Files

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QUANTITATIVE METHODS IN COST ENGINEERING:

Course Description:
Until recently, it was difficult for anyone except with a PhD who has some computer programming expertise to solve complicated finance problems. Today the power of EXCEL and add-ins such as @RISK, SOLVER, TOPRANK and PRECISION TREE makes it possible to tackle problems that were viewed only a few years ago as the province of “rocket scientists”. A variety of financial models will be considered as EXCEL case studies, e.g. fitting exponential growth of Microsoft sales, multi-period capital budgeting using the Analytical Hierarchy Process and Solver. These case studies will be used to highlight some of the theoretical complexities in solving these problems. Each student should: (1) learn how to use the software EXCEL to solve complicated financial problems (2), learn the theoretical underpinnings of these financial models to be able to draw meaningful conclusions, (3) learn what areas to look into if further understanding is needed. A variety of theoretical problems will be introduced in a financial context, such as non-linear optimization, regression analysis, analytical hierarch progress, and uncertainty analysis.

Recommended Text Book (but not required:
"Financial Models Using Simulation and Optimization” by Wayne Winston