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DAEN 427 / ISEN 427
Decision and Risk Analysis

Fall 2026

Description

In this course we’ll learn how to model decisions, risk, and preferences using Bayesian inference. We’ll explore how to make choices under uncertainty and how those choices differ from rational models. Drawing from economics, psychology, and management science, we’ll apply these ideas to engineering systems.

Schedule

Week Dates Tuesday Thursday
1 8/25–27 Introduction, Probability Bayes’s Theorem
2 9/1–3 Distributions Estimating Proportions
3 9/8–10 Estimating Counts Odds and Addends
4 9/15–17 Min., Max., and Mixture Poisson Processes
5 9/22–24 Decision Analysis Testing
6 9/29–10/1 Exam #1 Comparison
7 10/6–8 Classification Inference
8 10/13–15 Survival Analysis Mark and Recapture
9 10/20–22 Logistic Regression LR Continuation
10 10/27–29 Regression Regression Continuation
11 11/3–5 Exam #2 Project Intro and Coordination
12 11/10–12 Conjugate Priors MCMC
13 11/17–19 Approx. Bayesian Computation Work on the Project
14 11/24–26 Project Intermediate Review Thanksgiving
15 12/1–3 Work on the Project Project Report + Presentation

Resources

Bayes' theorem

"Risk comes from not knowing what you're doing." Warren Buffett

"Project success is not about avoiding risks but about making better decisions when they appear."

"It is not the strongest or the most intelligent who will survive but those who can best manage change and uncertainty." adapted from Charles Darwin

"Even one well-done observation will be enough in many cases, just as one well-made instrument often suffices for the establishment of a law." Émile Durkheim

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