Cornell University and @RISK Help the LCRA Manage Water Supplies

Cornell University and @RISK Help
the LCRA Manage Water Supplies

Effective storage and distribution of water is a challenge in most regions, but in hot and arid Central Texas water supply affects every person, farm, and business. The Lower Colorado River Authority (LCRA) manages water supplies for municipalities, farms and industries along a 600-mile stretch of the Texas Colorado River which includes the state capital Austin. In a unique partnership, Cornell University Operations Research students collaborated with the LRCA to develop a water supply model using Palisade’s @RISK software.

» Read the full case study

Recent School Adoptions

Over 60,000 students use the DecisionTools Suite annually in their MBA and graduate level programs. In 2010, 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:

  American University
Claremont Graduate University
Florida Atlantic University
Fort Lewis College
Johns Hopkins University
McNeese State University
Mississippi State University
Pennsylvania State University
Rice University
Texas A&M University
University of Missouri
University of New Brunswick
University of Tennessee
West Virginia University


  Aalto University (Finland)
Ecole des Mines d'Albi-Carmaux (France)
Glasgow Caledonian University (UK)
Institute of Technology Sligo (Ireland)
Instituto Superior Tecnico (Portugal)
RMIT University (Australia)
Universidad de Santiago de Compostela (Spain)
Universitaet Duisburg-Essen (Germany)
University of Dundee (UK)
University of Sydney (Australia)

@RISK I have used the @RISK software for about 10
      years now, and have found it extremely useful
      for constructing simple as well as moderately
      complex Monte Carlo simulation models. Using
      the tool, it has been possible to develop
      simulation models directly reflecting the
      epidemiological relationships relevant to the
      simulation problem without requiring computer
      programming skills.  Trial Versions

          Dr. Dirk Pfeffer, Royal Veterinary College, University of London


Palisade is happy to showcase professors who implement our tools into their teaching. This month we would like to introduce you to Dr. Arnoldo Camacho from the INCAE Business School.

Dr. Arnoldo Camacho
INCAE Business School

What do banks, bond-rating agencies and homeowners in places like Las Vegas have in common? They all grossly misjudged risk and, as a result, made bad decisions during the recent housing bubble.

That’s why Dr. Arnoldo Camacho, a professor at the highly regarded INCAE Business School in Alajuela, Costa Rica, incorporates Palisade’s @RISK software in his MBA courses – Finance I and Financial Institutions and Capital Markets.

“The Finance course focuses on the creation of value through efficient decision making, which involves risk analysis,” says Dr. Camacho, who has taught at INCAE for 22 years. “In the Financial Institutions and Capital Markets courses, an in depth analysis of credit risk requires the estimation of the probability of default of issuers of debt.

“In both courses, @RISK is used for simulation and sensitivity analysis.”

Camacho was introduced to @RISK through INCAE, where his courses attract typically attract 60 to 65 students.

When asked why it is important to expose his students to @RISK, Camacho says, “It is easy to handle, and it allows students to move from uncertainty to risk analysis, which requires critical thinking.”

» Find out more about Dr. Arnoldo Camacho’s teaching, research,
   and publications

Licensing Options

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 5.7 for your course by contacting:

AddressPalisade Academic Sales    
800-432-7475 / 607-277-8000

@RISK @RISK is a wonderful tool which helps
      business people make accurate, efficient
      financial projections, as well as accurately
      establish which risks their investments are
      exposed to.  Trial Versions

      Dr. Gabriel Rovayo, Professor at Instituto de Desarrollo
         Empresarial, Ecuador

Teaching Tips & Examples

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.

Modeling the Profitability of a
New Product: Batmobile Sales
Excerpted from Financial Models Using Simulation and Optimization II by Wayne Winston, published by Palisade

The following example illustrates many of the issues involved in modeling profitability of a new product. We show how @RISK can be used to estimate both the average profitability and riskiness of a new product.

» Download the example spreadsheet and step-by-step instructions

Textbook of the Month

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.

Modern Business Statistics
with Microsoft Excel
By David R. Anderson, Dennis J. Sweeney, and Thomas A. Williams

A wealth of timely business examples, proven methods, and additional exercises throughout this edition demonstrate how statistical results provide insights into business decisions and present solutions to contemporary business problems. High-quality problems noted for their unwavering accuracy and the authors’ signature problem-scenario approach clearly show how to apply statistical methods in practical business situations. Examples are included using PrecisionTree and StatTools.

» Learn more from the publisher
» See a list of books bundled with Palisade software

Featured White Paper

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.

Monte Carlo Simulation for Schedule Risks
by Brenda McCabe, University of Toronto, 2003

This paper discussed the development of a probabilistic model to assist in estimating lower and upper duration estimates required in the preparation of a schedule risk analysis using Monte Carlo simulation. The model was tested in 14 projects with excellent results. The author believes that Monte Carlo simulation can provide valuable information to the owner and the contractor.

Palisade  View the full paper

Academic Live Webcast

Professors using Palisade software share examples and teaching tips they've used in class in Palisade's Academic Webcast series. Register online at no charge.

Using RISKOptimizer/Evolver in Determining
Optimal Swaps for Risk Mitigation

Presented by Dr. Roy Nersesian, Professor at the Center for Energy Marine Transportation and Public Policy, Columbia University
March 30, 2011, 11:00am ET

Determining optimal levels of financial derivatives to mitigate risk oftentimes involve normal or lognormal distribution along with a standard deviation. In this free live webcast, Roy Nersesian proposes that simulating future prices can be done by examining historical daily or weekly price changes to obtain a histogram of absolute price changes. (There is NO CHARGE for this webcast.)

» Register now

Teaching Decision Making in MBA Classes
Presented by Phil Rogers, Clinical Assistant Professor at the C.T.
Bauer College of Business at the University of Houston
April 27, 2011, 1:00pm ET

In this live webcast, Phil Rogers will discuss the business modeling and decision making courses he teaches to MBA and Executive MBA candidates at the University of Houston.  His courses deal with the practical application of spreadsheet modeling and management science techniques to the solution of complex problems.(There is NO CHARGE for this webcast.)

» Register now

» 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

In This Issue

» Cornell University and
   @RISK Help the LCRA
   Manage Water Supplies

» Recent School Adoptions

» Spotlight
   Dr. Arnoldo Camacho
   INCAE Business School

» Licensing Options

» Teaching Tips &

   Modeling the Profitability
   of a New Product:
   Batmobile Sales

» Textbook of the Month
   Modern Business Statistics
   with Microsoft Excel

» Featured White Paper
   Monte Carlo Simulation for
   Schedule Risks

» Academic Live Webcasts

» About Palisade and the
   DecisionTools Suite

Keep in Touch

PalisadeClick to chat live with
a sales representative

Risk Conferences

2011 Palisade Risk ConferencesIndustry
present real-
world case studies about
innovative and interesting approaches to risk and
decision analysis. Also,
ever-popular workshops and
training delivered by Palisade
consultants, and previews of
new software.

» Amsterdam:
   29-30 March

» México, D.F.:
   1-2 June

» Rio de Janeiro
   14-15 September

» Las Vegas
   10-11 November


» Trade Shows
Palisade will be attending the following trade shows in the coming months.
INFORMS Conference
on Business Analytics
and Operations Research

April 10th - 12th
Chicago, IL
April 28th – 29th
Hartford, CT
AACE International
June 19th – 23rd
Disneyland Hotel
Anaheim, CA
PMI Global Congress 2011
North America

October 22nd – October 25th
Dallas/Fort Worth, TX
October 30th – November 3rd
Colorado Convention Center
Denver, CO
INFORMS Annual Meeting
November 13th – 16th
Charlotte Convention Center
Charlotte, NC
DSI - Decision Sciences Inst
November 19th – 22nd
Boston MA
Congress 2011

May 9th - 11th
MIOGE 2011
June 21st - 23rd
58th ISI Congress 2011
August 21st - 26th

» Training Seminars
Melbourne: 30-31 March
Sydney: 6-8 April
Perth: 11-12 May
Aukland: 30-31 May
Wellington: 2-3 June
Melbourne: 6-7 July
Sydney: 20-22 July

São Paulo: 29-31 de março
Rio De Janeiro: 6-8 de abril
Belo Horizonte: 11-13 de maio

EMEA & India
London: 12-13 April
London: 24-25 May
London: 20-21 June
Moscow: 23-24 June
London: 27-28 June

Latin America
Lima: 11-13 de abril
Santiago, Chile: 3-5 de mayo
Panamá: 11-13 de mayo
México: 17-19 de mayo

North America
Washington, DC: 5-7 April
Phoenix: 19-21 April
Miami: 3-5 May
Chicago: 17-19 May
Calgary: 7-9 June
Mount Laurel, NJ: 21-22 June
Kansas City, MO: 6-7 July
Seattle, WA: 19-21 July

» Live Web Training
Decision-Making and Quantitative Risk Analysis using @RISK

28-29 April, 9am-1pm ET
28-29 July, 1pm-5pm ET

12-13 May, 9am-1pm ET
10-11 August, 1pm-5pm ET

Decision-Making and Quantitative Risk Analysis using the DecisionTools Suite

31 May-1 June, 11am-3pm ET

18-19 April, 9am-1pm ET
15-16 June, 11am-3pm ET

Project Risk Assessment Using @RISK for Project
14 April, 9am-1pm ET
11 July, 11am-3pm ET

Análisis de decisión
y de riesgo cuantitativo
utilizando @RISK

26 y 27 de abril,
9am-1pm UTC

3 y 4 de mayo,
9am-1pm UTC

» Live Webcasts
These complimentary sessions are 30-60 minutes, held via web conference. See industry case studies, software demos, applications, and more.

Gambling, Money
Management, and
Monte Carlo Simulation
March 24, 2011, 1:00pm ET
Dr. Wayne Winston
Professor, Kelley School of
Business at Indiana University
» Register

Using RISKOptimizer/Evolver
in Determining Optimal Swaps
for Risk Mitigation

March 30, 2011, 11:00am ET
Roy Nersesian, Professor, Columbia University
» Register

Teaching Decision Making
in MBA Classes

April 27, 2011, 1:00pm ET
Phil Rogers, Clinical Assistant Professor, University of Houston
» Register

Trial Versions

Palisade software is available in fully functional trial versions. Try @RISK or any of our software today!

The DecisionTools Suite
The complete risk and
decision analysis toolkit

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