Teaching Concepts of Risk Analysis in Economic Evaluations with @RISK
As taught in the Masters of Energy Economics program at
Universidad Técnica Federico Santa María (UTFSM) in Chile
How do graduate students gain the skills and tools needed to address complex problems in the energy sector? In Professor Elio Cuneo's classes, students have the benefit of using the same tools that Mr. Cuneo has applied in the private sector for economics valuation using risk analysis.
For several years, Professor Cuneo (Civil Engineer, MBA Finance, and Certificate in Risk Management) has taught graduate-level energy economics and development using @RISK at the Federico Santa Maria Technical University and the Universidad de Antofagasta.
Many of the students are enrolled in the Masters of Energy Economics program, an accredited program aiming to train leaders in the energy field at the highest levels of technology and management. Around 30 students learn risk modeling with @RISK every year.
@RISK helps Professor Cuneo’s students to understand and apply the basic concepts of risk analysis in economics valuations, such as Jensen Inequality, Means Fallacy, Risk Index, and more. Students gain powerful tools to be prepared for decision making in highly uncertain environments.
“Students gain an understanding about the relevancy of stochastic analysis compared to traditional valuation methods. Applying @RISK to real situations in the public sphere, such as the Campanario electricity supply contract which went bankrupt, gives the students a quick understanding of the power of stochastic analysis,” says Professor Cuneo.
» More about the Masters in Energy Economics program at UTFSM
» More about Elio Cuneo
There is an incredibly quick payoff to using
these powerful, user friendly, PC-based
tools. Students, working in small teams,
are immediately able to use these tools
and techniques to solve problems they are
currently dealing with at work.
Dr. Phil Rogers, Bauer College of Business,
University of Houston
Over 60,000 students use the DecisionTools Suite annually in their MBA and graduate level programs. In 2011, over 800 universities worldwide adopted the DecisionTools Suite. Professors in business, engineering, OR, and other fields keep their students on the cutting edge by teaching the latest analytical techniques from Palisade. Some major schools with programs and courses that standardized on the DecisionTools Suite last month include:
US and Canada:
Florida State University
University of Arkansas
University of Southern Indiana
Western Washington University
||Caroline Maria de Miranda Mota - Brazil |
Centro Culturales de Mexico AC - Mexico
Escuela Colombiana de Ingeniería Julio Garavito - Colombia
Fundação de Assistência e Educação Faesa - Brazil
Fundação Getulio Vargas - Brazil
Grupo IBMEC Educacional S/A - Brazil
Hochschule f. angew Wissensch. FH Ingolstadt - Germany
Hochschule Reutlingen - Germany
IBMEC - Brazil
Instituto Tecnologico y de Estudios Superiores de Monterrey - Mexico
Koc University - Turkey
KTH Royal Institute of Technology - Sweden
LUMS Lahore University of Management Sciences - Pakistan
Lund University - Sweden
Middle East Technical University - Turkey
Pontifica Universidad Catolica del Peru - Peru
Technical University of Denmark - Denmark
Technical University of Kosice - Slovak Republic
The University of Sydney - Australia
Università degli Studi di Ro - Italy
Universite d'Auvergne-Clermont-Fd1 - France
Universitetet i Bergen - Norway
Utrecht University - Netherlands
There are three easy ways to get the DecisionTools Suite for your students:
Course Licenses available from Palisade. These are economical, annually renewing bulk licenses for both
network lab and laptop installation.
» Learn more
Student Versions from Palisade. These are 12-month versions available for purchase individually by students through either the Palisade web site or the school store.
» Learn more
Textbook Editions available bundled with textbooks.
These are time- and model-limited licenses.
» Learn more
Get DecisionTools Suite 6.0 for your course by contacting:
Palisade Academic Sales
800-432-7475 / 607-277-8000
I really like StatTools forecasting. The
students find it easy to use, and more
importantly to them, easy to compare
the four forecasting techniques and
Dr. Phillip Rokicki, H. Wayne Huizenga
School of Business & Entrepreneurship
Nova Southeastern University
The DecisionTools Suite is a great way to present quantitative techniques in a straightforward, easy-to-understand way. Each month we feature an example or tip illustrating how students can gain "real world" benefits by implementing quantitative analysis.
Creating Dummy Variables in StatTools
Excerpted from Learning Statistics with StatTools, by S. Christian Albright, published by Palisade
There are many times, particularly in regression analysis, where you need to incorporate a categorical variable in a quantitative analysis. This categorical variable might be a text variable, with values such as Male and Female, or it might be coded numerically, such as 1 for high school education only, 2 for undergraduate degree in college, or 3 for graduate degree in college. In either case, you should usually not use the categorical data in the form it is given. The trick is to create a dummy variable for each category, where the dummy variable equals 1
for each observation in the category and 0 for all other observations.
Download the example spreadsheet and
@RISK distribution functions have both required and optional arguments. The only required arguments are the numeric values which define the range and shape of the distribution. All other arguments (such as name, truncation, correlation and others) are optional and can be entered only when needed. These optional arguments are entered using property functions using a pop-up Input Properties window. Clicking the fx icon at the end of the Cell Formula text box displays the Input Properties window. Many properties can use cell references to Excel cells. Simply click the Reference Entry icon next to the property to add a cell reference.
The DecisionTools Suite is included in dozens of major textbooks, and is a key component of more titles every year. Authors use the DecisionTools Suite to illustrate key analytical concepts and build examples demonstrating the value of quantitative techniques in business, OR, and engineering.
Management Science with
by Patrick Johanns
This book outlines, in very practical terms, how to make better-informed and more effective business decisions through the use of mathematical modeling using Excel spreadsheets. The author implements DecisionTools Suite software to account for uncertainty and create more realistic, probabilistic models.
» Learn more from the publisher
» See a list of books bundled with Palisade software
Professors, PhD candidates, practitioners and others often use the DecisionTools Suite as part of a complex analysis to address important problems. These analyses are published in white papers. Each month we will feature a different academic white paper addressing a wide range of issues.
The Effectiveness of Using Project
Management Tools and Techniques
for Delivering Projects
Mufeed Hajjaji, Paul Denton, Steve Jackson
The University of Huddersfield
In today’s dynamic commercial environments, project management is becoming more and more crucial in supporting organizations to achieve their enterprise goals. However, increasing task complexity in projects, finishing projects on time within budget, and achieving the scope of the project becomes ever difficult. The purpose of this research as arisen from one of the most important areas in project management, both from a research and a practitioner perspective; ‘How to avoid project failure and achieve higher rates of project success?’. The outcome of this work is to demonstrate how the adoption of project management tools and specific risk management software, if successfully implemented, can be important tools in enabling project managers to achieve higher levels of success.
Read the full paper here
Experts using Palisade software share examples and teaching tips. Register online at no charge.
Use of @RISK in Food Safety
To be presented by Charles Yoe, Notre Dame of Maryland
University and Charles Yoe Consulting
January 10, 2013, 11:00am EST (Eastern Standard Time)
In this complimentary live webcast, Prof. Charles Yoe will use the FDA/Center for Food Safety and Applied Nutrition’s report “Quantitative Risk Assessment on the Public Health Impact of Pathogenic Vibrio parahaemolyticus In Raw Oysters” in a demonstration and discussion of the use of @RISK in food safety risk assessment.
» Read more details about the webcast and register here
Portfolio Management using @RISK
To be presented by Matt Rosenberg, RoseCap Investment Advisors
January 17, 2013, 11:00am EST (Eastern Standard Time)
In this complimentary live webcast, Matt Rosenberg will show the benefits of using Monte Carlo simulation in the processes of portfolio construction, and portfolio management for individuals, families and institutional investors. Topics will include a general overview of the portfolio management processes, as well as specific examples showing the use of @RISK for risk management within these processes.
» Read more details about the webcast and register here
» See complete Webcast schedule
The Academic Global Leader in
Risk and Decision Analysis
Palisade is the world’s leading provider of risk and decision analysis software and solutions. Founded in 1984, its products @RISK and the DecisionTools Suite are used by over 95% of the Fortune 100, in nearly every industry around the world. Palisade is headquartered in New York State, and has offices in London, Sydney, Rio de Janeiro, and Tokyo.
What is The DecisionTools Suite?
The DecisionTools Suite is the world’s only integrated set of risk and decision analysis programs. The Suite includes @RISK for Monte Carlo simulation, PrecisionTree for decision trees, and TopRank for “what if” sensitivity analysis. In addition, DecisionTools Suite comes with StatTools for statistical analysis and forecasting, NeuralTools for predictive neural networks, and Evolver and RISKOptimizer for optimization. All programs work together seamlessly, and all integrate completely with Microsoft Excel for ease of use and maximum flexibility.
The Suite is offered in three affordable and flexible licensing options for those in academia: Student Versions, Course Licenses and Full Academic Versions.
» Schools using Palisade software
» Textbooks using Palisade software
Story to Share?
How are you using Palisade software in your classroom, lab, or field work? Let us know by answering a few brief questions. Please send replies to
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- How does Palisade software help you and your students?
- Any other comments.
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