Metodi matematici per l'impresa - eng

MATHEMATICAL METHODS FOR BUSINESS

Prof. Ernesto Salinelli

Course Code: E0018
Subject code: SECS-S/06
6 ECTS – 48 hours
Location: Novara


Language: Italian
Brief description:
Introduction to the use of Excel for the implementation and the analysis of some decision models in business under certainty and risk.

Course Texts:
•    Didactic material prepared by the teacher
•    G.M. Monahan, Management Decision Making, 2010, Cambridge University Press (recommended reading)
•    P. Klibanoff, A. Sandroni, B. Moselle, B. Saraniti, Statistica per manager, Egea, 2010 (recommended reading)

Educational aims
The course aims at providing: the ability to develop suitable models for the analysis and the solution of some Business problems; a sufficient practice in the use of the spreadsheet for the implementation of such models; the expertise to interpret and use the information obtained from the implementation of the models.

Prerequisites
The exam of Statistical Methods for Industry and Business is recommended.

Teaching methods
Most of the activity takes place in the computer laboratory.

Other information
Any useful information on the course and supplementary didactic resources can be found on the web page of the course at the URL: https://eco.dir.unipmn.it/.

Examination
Examination at the computer, oral exam is optional. It is possible to arrange with the teacher alternative evaluation methods.

Content of the Course:
Introduction to the use of Excel for the implementation of business models.
Prescriptive models: linear programming problems (production and inventory, capital budgeting, portfolio selection, transportation problems), their formulation and graphic interpretation. Implementation of an LP problem in Excel, and its solution with the Solver. Sensitivity analysis: graphic examples, reading and interpretation of the results of the Report of the Excel Solver. Introduction to the Duality Theory, shadow prices. Elements of integer linear programming and non linear programming.
Decisions under risk: refresh of some basics. Expected utility, certainty equivalent, risk premium, risk aversion. Influence diagrams: nodes and arcs. Decision trees: construction and solution. Sensitivity analysis. The value of perfect and imperfect information.
Predictive models: business applications of the linear regression model and its implementation in Excel. Introduction to Monte Carlo  methods.