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Incorporating and Assessing Risk Analysis in Undergraduate Engineering Economy Courses

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2012 ASEE Annual Conference & Exposition


San Antonio, Texas

Publication Date

June 10, 2012

Start Date

June 10, 2012

End Date

June 13, 2012



Conference Session

Methods, Cases, and Directions

Tagged Divisions

Engineering Management, Systems Engineering, Engineering Economy, and Industrial Engineering

Page Count


Page Numbers

25.758.1 - 25.758.6



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Paper Authors


Joseph C. Hartman University of Florida

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Joseph C. Hartman is professor and Chair of Industrial and Systems Engineering. He received his B.S. in general engineering from Illinois and M.S. and Ph.D. in industrial and systems engineering from Georgia Tech. His teaching and research interests are in economic decision analysis and applied operations research. He is currently Editor of the Engineering Economist and is author of the textbook Engineering Economy and the Decision-Making Process.

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Incorporating and Assessing Risk Analysis in Undergraduate Engineering Economy CoursesAbstractAs spreadsheets have become commonplace in the teaching of engineering economics, itis time to adjust our curriculums to include more advanced material. Specifically,financial mathematics calculations can be reduced to teaching the meaning of (P/F,i,N) and(A/P,i,N) and all other calculations can be eliminated, as they are unnecessary with the useof spreadsheets. Eliminating this material allow more time to focus on tools for makinggood financial investment decisions, such as cash flow estimation, risk analysis andmulti-attribute decision analysis. We report on how this material can be covered in alarge-class setting, including how it can be examined. Our data suggests thatspreadsheets must be incorporated into quizzes and or examinations in order to assessstudent abilities in these areas. Thus, while our teaching has evolved to includespreadsheets, so must our examination procedures.

Hartman, J. C. (2012, June), Incorporating and Assessing Risk Analysis in Undergraduate Engineering Economy Courses Paper presented at 2012 ASEE Annual Conference & Exposition, San Antonio, Texas. 10.18260/1-2--21515

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