Systems Engineering
Decision and Risk Analysis
Overview
This course provides an overview of decision and risk analysis techniques. It focuses on how to make rational decisions in the presence of uncertainty and conflicting objectives. Concepts will be illustrated through case studies and practiced by students through exercises.
Who Should Take This Course
Prerequisites
1 year engineering or IT work experience; familiarity with basic statistics and calculus.
Course Outline
Decision and Risk Analysis
- Modeling uncertainty
- Principles of rational decision-making
- Multi-criteria decision making using multi-attribute utility theory
- Ranking and scoring approaches to group decision making
- Representing and solving decision problems using influence diagrams and decision trees
- Objective and subjective probabilities
- Defining and calculating the value of information
- Modeling risk attitudes and utility functions
- Sequential decision making
- Risk analysis and risk management processes