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Predictive Modeling and Optimization (Honors)


Course Description

Focuses on calculus, statistical inference, predictive modeling, and optimization. Special attention will be given to the foundations of these topics and also to the modeling and application of these tools within all the functional areas of business.


Athena Title

Predictive Model Optimiz Hon


Equivalent Courses

Not open to students with credit in BUSN 4000, BUSN 4000E


Non-Traditional Format

Honors students complete additional case studies.


Prerequisite

(MSIT 3000 or MSIT 3000E or MSIT 3000H or BUSN 3000 or BUSN 3000E or BUSN 3000H) and permission of Honors


Grading System

A - F (Traditional)


Course Objectives

A student who completes this class will be able to: 1. Recognize the principles that underlie causal inference. 2. Employ statistical methods to predict organizational and market outcomes. 3. Apply the concept of the derivative to determine optimal outcomes.


Topical Outline

Review of Foundations (2 weeks) • Descriptive Statistics • Inferential Statistics • The Simple Linear Regression Model • Review of Functions - Linear, Quadratic, Exponential, and Logarithmic Functions (etc.) Predictive Modeling – Regression (8-9 weeks) • Data Structures • The Experimental Idea • Model Specification • Regression and Causality • Estimation and Inference • Regression with Qualitative Data • Application of Regression Models • Propensity Score Matching Mathematics of Change and Optimization (4-5 weeks) • The Derivative • Rules for Differentiation • Derivative as a Rate of Change • Higher Order Derivatives • Partial Derivatives • Using the Derivative • Local and Global Maxima and Minima • Inflection Points • Profit, Cost, and Revenue • Elasticity of Demand • Optimization Problems