Teoria delle decisioni - ENG

DECISION THEORY

Prof. Ernesto Salinelli

Course Code: E0143
Subject code: SECS-S/06
6 ECTS – 48 hours
Location: Novara


Educational aims

The course aims at introducing the student to the understanding and solving of some basic individual choice problem under uncertainty, with particular attention to the insurance and finance framework.

Content of the course

Introduction to integral calculus for real functions of a real variable: antiderivatives, indefinite integral and its computation, integration by parts and by substitution; Riemann integral and its properties, mean value Theorem; integral functions and their properties; fundamental Theorem of integral calculus, Torricelli-Barrow Theorem; generalized integrals and applications.
Reminders of Probability: sample space, events, probability; discrete and continuous random variables; moments of random variables.
Introduction to Decision Theory: random financial operations, mean-variance principle, equity principle and its application in insurance, preference relations, lotteries and expected utility, attitudes towards risk, certainty equivalent and risk premium; introduction to portfolio theory, evaluation of complex random financial operations.


Prerequisites

Differential calculus for real functions of one and several real variables. The exam of Mathematics 1 must be substained before. It is also recommended to substain the exams of Mathematics 2 and Statistics.


Course Texts

Margarita S. - Salinelli E., MultiMath-Matematica Multimediale per l’Università, Springer-Verlag Italia, 2004 (refresh on prerequisites and integral calculus) The book is available in the library
Castellani G., De Felice M., Moriconi F., Manuale di Finanza II (teoria del portafoglio e mercato azionario), Il Mulino, 2005. The book is available in the library
Further informations can be found in the web page of the course at the URL:

https://eco.dir.unipmn.it/


Teaching methods

Lessons and exercises.


Examination

A compulsory written exam with exercises and theoretic questions, and an optional oral exam.