Part 1. Lectures. Part 2. Exercises. Weekly sessions of two hours.

The purpose of this course is to prepare students to identify business situations where use of quantitative aspects could enhance decisionmaking capabilities; to engender confidence with handling numbers in business situations; and enhance awareness of the common analytical tools used in decision-making.

1. Credit Risk: defintion of credit risk, Value at Risk, Portfolio dynamics with Markov chains, interest rates, the use of collateral and an application to the 2008-2009 financial crisis

2. Manpower planning (Markow chains, stable state)

3. Unconstrained optimisation  (optimum in a perfect competitive market)

4. Constrained optimisation - Lagrange theory and linear programming (theory of exhaustible resources)

5. Time dependance of the value of money (discounting of cash flows)

6. Seasonal effects in time series

7. Approximations of series by means of Taylor/Mc Laurin expansions

The student should have had a basic course in mathematics in her basic curriculum. They should have a base knowledge of statistics (Binomial Distribution, Normal distribution), matrix calculus and calculus (rules for derivation of smooth functions).

The student should be able to apply the methods to real life situations such as

1) Credit Risk
2) Manpower planning
3) Optimistation (constrained and unconstrained)
4) Deseasonalisation of time series

Questions can be asked during the course, via e-mail, electroinc learning environment or by appointment.

Written exam: The student will have to solve several analytical problems.

Course notes will be supplied in electronic form via Chamilo platform.

Cost of printing the student notes.

Statistics, operations research, Markov Chain, Credit Risk, Value at Risk, Manpower planning, Seasonal adjustment, Taylor/mc Laurin approximation

Op dit opleidingsonderdeel is er geen volgtijdelijkheid van toepassing.