everything.study
15.060

Data, Models, and Decisions

3-0-6 units · Graduate

Introduces students to the basic tools in using data to make informed management decisions. Covers basic topics in data analytics, including introductory probability, decision analysis, basic statistics, regression, simulation, linear and discrete optimization, and introductory machine learning. Spreadsheet exercises, cases, and examples drawn from marketing, finance, operations management, and other management functions. Restricted to first-year Sloan master's students.

Fall 2014

Topics

  • Decision Analysis I - Kendall Crab & Lobster Case
  • Decision Analysis II – Conditional Probabilities
  • Discrete Probability Distributions
  • Continuous Probability Distributions
  • The Normal Distribution
  • Simulation I – The Gentle Lentil Case
  • Regression Models I
  • Simulation II – The Ontario Gateway Case
  • Regression Models II
  • Regression Illustrated
  • Introduction to Linear Optimization Modeling
  • Solving and Analyzing Linear Optimization Models
  • Filatoi Riuniti Case: Production Management
  • Introduction to Nonlinear Optimization
  • Introduction to Discrete Optimization
  • International Industries Case: Strategic Investment Management
  • Integrative Case on the Financial Crisis
  • Dynamic Optimization for Retail Pricing
  • Summary and Look Ahead

Readings

  • [DMD] = Bertsimas, Dimitris, and Robert Freund. Data, Models, and Decisions: The Fundamentals of Management Science . Dynamic Ideas, 2004. ISBN: 9780975914601.
    Listed reading
  • Read [DMD] Chapter 1.
    Listed reading
  • Prepare the Kendall Crab and Lobster case (at the end of Chapter 1 in [DMD]), and be ready to discuss the following questions in class: What are the choices that Jeff Daniels faces? What are the sources of uncertainty in the case? What are the consequences of the various possible outcomes? What course of action would you recommend for Jeff Daniels?
    Listed reading
  • Read [DMD] Chapter 2, Sections 2.1–2.3.
    Listed reading
  • LEC #: 3 · TOPICS: Discrete Probability Distributions · READINGS: Read [DMD] Chapter 2, Sections 2.4–2.11 and 2.13.
    Reading assignment
  • LEC #: 4 · TOPICS: Continuous Probability Distributions · READINGS: Read [DMD] Chapter 3, Sections 2.8–2.11 and 3.1–3.3.
    Reading assignment
  • LEC #: 5 · TOPICS: The Normal Distribution · READINGS: Read [DMD] Chapter 3, Sections 3.4–3.8.
    Reading assignment
  • Read [DMD] Chapter 4, Sections 4.1–4.2 and all of Chapter 5.
    Listed reading
  • Read the Gentle Lentil Restaurant case (at the end of Chapter 5 in [DMD]) and prepare answers to the questions at the end of the case. (Note: you are Not required to build a simulation model.) Decide how you would go about analyzing the salary implications of the two career decisions that Sanjay Thomas faces.
    Listed reading
  • LEC #: 7 · TOPICS: Regression Models I · READINGS: Read [DMD] Chapter 6, Sections 6.1–6.7.
    Reading assignment
  • LEC #: 8 · TOPICS: Simulation II - The Ontario Gateway Case · READINGS: Read the Ontario Gateway case (at the end of Chapter 5 in [DMD]). Perform the case analysis modeling assignment for the Ontario Gateway Case described at the end of the case. Hand In a management memorandum presenting your conclusions with appropriate but concise back-up enclosures to support your recommendations.
    Reading assignment
  • LEC #: 9 · TOPICS: Regression Models II · READINGS: Read [DMD] Chapter 4, Sections 4.4–4.5 and Chapter 6, Sections 6.8–6.10.
    Reading assignment
  • LEC #: 10 · TOPICS: Regression Illustrated · READINGS: Read the two regression cases entitled “Predicting Heating Oil Consumption at Oilplus ” and “Executive Compensation” (at the end of Chapter 6 in [DMD]). Perform the analyses outlined at the end of each case and come to class prepared to discuss these two regression cases.
    Reading assignment
  • LEC #: 12 · TOPICS: Introduction to Linear Optimization Modeling · READINGS: Read [DMD] Chapter 7, Sections 7.1–7.3.
    Reading assignment
  • LEC #: 13 · TOPICS: Solving and Analyzing Linear Optimization Models · READINGS: Read [DMD] Chapter 7, Sections 7.4–7.6.
    Reading assignment
  • LEC #: 14 · TOPICS: Filatoi Riuniti Case: Production Management · READINGS: Read and analyze the Filatoi Riuniti case at the end of Chapter 7 in [DMD]. Be prepared to discuss this case in class.
    Reading assignment
  • LEC #: 15 · TOPICS: Introduction to Nonlinear Optimization · READINGS: No readings.
    Reading assignment
  • LEC #: 16 · TOPICS: Introduction to Discrete Optimization · READINGS: Read [DMD] Chapter 9, Sections 9.1–9.4.
    Reading assignment
  • LEC #: 17 · TOPICS: International Industries Case: Strategic Investment Management · READINGS: Read (but do not hand in) the case “International Industries, Inc.” at the end of Chapter 9 in [DMD]. We will discuss the case in class.
    Reading assignment
  • LEC #: 18 · TOPICS: Integrative Case on the Financial Crisis · READINGS: Read the case “Money Tree Mortgage in Distress: Evaluating Alternative Funding Options” and be prepared to discuss the case in class.
    Reading assignment
  • LEC #: 19 · TOPICS: Dynamic Optimization for Retail Pricing · READINGS: Read the case “Pricing Strategies for Power-Pro’s MBA Laptop Bag.” We will discuss this case and an optimization model for determining optimal pricing in class.
    Reading assignment
  • LEC #: 20 · TOPICS: Summary and Look Ahead · READINGS: No readings.
    Reading assignment
  • Bertsimas, Dimitris, and Robert Freund. Data, Models, and Decisions: The Fundamentals of Management Science . Dynamic Ideas, 2004. ISBN: 9780975914601.
    Listed reading

Prerequisites & course information

Prereq: Permission of instructor G (Fall, Summer) 3-0-6 units Credit cannot also be received for 15.730

Sources