EMSE 6450 Quantitative Methods in Cost Engineering
Sensitivity Analysis with Data Tables
Time Value of Money: A Special kind of Trade-Off:
$100 @ 10% annual interest now =$110 one year later
$110 @ 10% annual interest now =$121 one year later
$100 @ 10% a

EMSE 388 Quantitative Methods in Cost Engineering
USING ANALYTICAL HIERARCHY PROCESS TO SELECT A JOB When multiple objectives are important to a Decision Maker, it is often difficult to choose between alternatives. Example: You are choosing a job. One mig

EMSE 388 Quantitative Methods in Cost Engineering
CHAPTER 13: DETERMINING MONTHLY LOAN PAYMENTS Suppose you are planning to buy a new car. The car costs $25000, you have been approved for financing the loan with a 5 year term through the car dealer and th

EMGT 6450 Quantitative Methods in Cost Engineering
PROJECT RISK ANALYSIS
WHY IS IT NEEDED?
Large Project (e.g. construction projects)
generally fail to meet company deadlines
Large Projects generally exceed the
calculated budget.
WHY DOES THIS HAPPEN?

EMSE 6450 Quantitative Methods in Cost Engineering
Chapter 2: Simple Linear Regression
There are many situations in which one wants to predict the value of a variable
(the dependent variable) from the value of one or more independent variables.
Typically:

EMSE 6450 Quantitative Methods in Cost Engineering
Financial Models Using Simulation and Optimization
CHAPTER 27 : Additional Uncertainty in
The News Problem
You still need to determine how many Year 2006 Calendars you need to order in
August 2005. It cos

EMSE 6450 Quantitative Methods in Cost Engineering
USING ANALYTICAL HIERARCHY PROCESS TO SELECT A JOB
When multiple objectives are important to a Decision Maker,
it is often difficult to choose between alternatives.
Example:
You are choosing a job. One mi

EMSE 6450 Quantitative Methods in Cost Engineering
CHAPTER 16:
PORTFOLIO OPTIMIZATION USING SOLVER
PROBLEM DEFINITION:
Given a set of investments (for example stocks) how do we find a portfolio that
has the lowest risk (i.e. lowest volatility or lowest va

EMSE 388 Quantitative Methods in Cost Engineering
CHAPTER 15:
MULTIPERIOD CAPITAL BUDGETING
Companies often have more worthwhile project under consideration than their
financial resources allow them to undertake
EXAMPLE:
Project
Year 1 Outflow (in Million

EMSE 6450 Quantitative Methods in Cost Engineering
CHAPTER 13: DETERMINING MONTHLY LOAN PAYMENTS
Suppose you are planning to buy a new car. The car costs $25000, you have
been approved for financing the loan with a 5 year term through the car dealer
and t

EMSE 6450 Quantitative Methods in Cost Engineering
CHAPTER 6: USING MULTIPLE REGRESSION
There are many situations in which one wants to predict the value the dependent
variable from the value of one or more independent variables.
Typically:
independent v

EMSE 6450 Quantitative Methods in Cost Engineering
Chapter 3: FITTING EXPONENTIAL GROWTH
Often a SCATTERPLOT will indicate that x and y are related, but not in a
linear fashion. EXAMPLE: MICROSOFT SALES (Not Real Data)
Microsoft Sales
4500
4000
Sales(in m

EMSE 388 Quantitative Methods in Cost Engineering Financial Models Using Simulation and Optimization
CHAPTER 27 : Additional Uncertainty in The Newsperson Problem You still need to determine how many Year 2006 Calendars you need to order in August 2005. I