Course ID:
Course Code & Number
IE 451
Course Title
Decision and Risk Analysis
Level
BS
Credit Hours/ ECTS Credits
(3+0+0) 3 TEDU Credits, 5 ECTS Credits
Year of Study:
Senior
Semester:
Fall
Type of Course:
Elective
Mode of Delivery:
Face-to-face
Language of Instruction:
English
Pre-requisite / Co-requisite:
Pre-requisites: MATH 230
Co-requisites: NONE
Catalog Description
Modeling of the decision problem: Structuring decisions, influence diagrams, decision trees, risk profiles, sensitivity analysis. Modeling uncertainty: Probability concepts, value of information, Monte Carlo simulation. Modeling preferences: Risk, utility theory, prospect theory.
Course Objectives
The course aims to teach the basic principles and the methods in decision analysis and risk modeling. The goal is to teach modeling decision problems under uncertainty using influence diagrams, decision trees and Monte Carlo simulation, and model risk attitudes of decision makers based on concepts from utility theory.
Software Usage
Course Learning Outcomes
Having successfully completed this course, students will be able to:
1. Identify elements of decision making, structure and model complex decision problems. (B1,e)
2. Apply appropriate techniques and methods to solve decision analysis problems (B3,k)
3. Assess the value of information (B6,k)
4. Model risk attitudes of decision makers. (B5, k)
Learning Activities and Teaching Methods:
Telling/Explaining
Discussion/Debate
Questioning
Reading
Problem Solving
Inquiry
Collaborating
Case Study/Scenarion Analysis
Simulation & Games
Hands-on Activities
Assessment Methods and Criteria:
Test / Exam
Quiz
Case Studies / Homework
Assessment Methods and Criteria Others:
Design Content
Recommended Reading
1. Clemen, R. T. , Reilly, T. (2014), Making Hard Decisions with Decision Tools, CENGAGE Learning.
2. Herrmann, J.W. (2014) Engineering Decision Making and Risk Management, Wiley.
3. Winston, W.L. (2004) Operations Research, CENGAGE Learning.
4. Raiffa H. (1997), Decision Analysis: Introductory Lectures on Choices Under Uncertainty, Mcgraw-Hill.
Required Reading
Course Materials
Grading
Learning Activities and Teaching Methods Others:
Course Coordinator:
Student Workload:
| Workload | Hrs |
|---|---|
| Course Readings | 15 |
| Hands-on Work | 10 |
| Exams/Quizzes | 30 |
| Case Study Analysis | 15 |
Course & Program Learning Outcome Matching: