
Course unit
MATHEMATICAL TOOLS FOR MANAGEMENT SCIENCE
ECN1034687, A.A. 2016/17
Information concerning the students who enrolled in A.Y. 2016/17
ECTS: details
Type 
ScientificDisciplinary Sector 
Credits allocated 
Core courses 
SECSS/01 
Statistics 
4.0 
Core courses 
SECSS/06 
Mathematics for Economics, Actuarial Studies and Finance 
4.0 
Course unit organization
Period 
Second semester 
Year 
1st Year 
Teaching method 
frontal 
Type of hours 
Credits 
Teaching hours 
Hours of Individual study 
Shifts 
Lecture 
8.0 
56 
144.0 
No turn 
Examination board
Board 
From 
To 
Members of the board 
3 Commissione AA 2016/17 
01/10/2016 
30/09/2017 
BURATTO
ALESSANDRA
(Presidente)
CAPPUCCIO
NUNZIO
(Membro Effettivo)
GRASSELLI
MARTINO
(Membro Effettivo)
GROSSET
LUCA
(Membro Effettivo)

Prerequisites:

Functions with several variables
Differential calculus
Basic descriptive and inferential statistics
Knowledge of software Excel 
Target skills and knowledge:

The course consists in two parts: the first one is about mathematical models, while the second part is about statistical models. Both will address issues in management and in finance.
Mathematical models
The course presents some models for financial markets, focusing on risk analysis and option pricing. Derivatives such as plain vanilla options are priced using binomial trees. Furthermore, some practical management problems are tackled and solved using the linear programming theory and Excel.
Statistical models
A first objective of the course is to study some basic statistical models useful in management and in finance for forecasting. The second objective is to introduce some statistical tools to evaluate the risk in financial investments. 
Examination methods:

Written exam 
Assessment criteria:

The evaluation will be based on the knowledge of the topics covered during the lessons 
Course unit contents:

Mathematical models: decision theory; options; linear programming and sensitivity analysis; operation Management with Excel; application to finance
Statistical models: the linear model (statistical inference and forecasting); discrete choice models; time series models; volatility models; the Value at Risk; portfolio selection and CAPM. 
Planned learning activities and teaching methods:

Classes lessons with slides
Blackboard exercises
Lab with Excel and GRETL 
Additional notes about suggested reading:

Slides constitute only a part of the course material. Exercises in the textbook and personal simulation with Excel and GRETL are strongly recommended. 
Textbooks (and optional supplementary readings) 

HULL J.C., Options, Futures, and Other Derivatives, 7th edition. : Prentice Hall, 2008.

BENNINGA S., Principles of Finance with Excel. : Oxford Un. Press, 2006.

WINSTON W.L., ALBRIGHT S.C., Management Science Modeling, 4th edition. : Cengage, 2012.

Stock J. H. & M. W. Watson, Introduction to Econometrics, 3rd Edition. : AddisonWesley Series in Economics, 2010. Anche in edizione italiana


