Decision Theory and Final Test Essay

Submitted By Lokesh-Kanakamedala

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Advanced Engineering Economics.
Study Guide for the Final Test. Fall 2012
The final test will be open notes open book. My cell phone is 409 291 3862,. My office is at Cherry engineering room 2203, should you have questions.
What to study for the final test
The final test is a comprehensive test. Please study ALL the material from your previous test The following three topics were not covered in the previous tests and are scheduled to be evaluated in the final test.
Topic 1. Taxes and depreciation (Canada book):
Make sure you understand tables 7-6 and 7-7 ATCF Analysis . A more complete description of these computations in on the video s 23 and 24 Depreciation and Taxes. http://www.screencast-o-matic.com/watch/clVDY7x4T http://www.screencast-o-matic.com/watch/clVDrJx4P
Video 24 is more comprehensive than the examples in the book. Make sure you watch such video. For video 24 you will need to have understood amortization tables from week 3. There will be a computational MS Excel home work. The questions on the test can be computational or conceptual.
Topic 2. Risk and uncertainty (Canada book):
The following chapters will need to be studied and graded as described below.
 Introduction to risk and uncertainty. This is a reading assignment. Some conceptual questions may be present in the final test
 Sensitivity analysis. Reading assignment. There will be a short MS excel assignment home work on this topic. A short question with little computations may be present in the final test.
 Analytical and Simulation Approaches to Risk Analysis. Reading assignment. Computational skills for this topic will be evaluated in the final project. There will not be a computational question on the final test on this chapter. There may be conceptual questions in the final test.
Topic 3. Decision Criteria and Methods

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