Illinois State's MBA Corporate Finance uses @RISK for Advanced Techniques
Students in corporate finance classes at Illinois State University’s College of Business rely on Palisade’s @RISK. Dr. Domingo Castelo Joaquin teaches Advanced Corporate Finance in a special MBA program for executives and managers from Archer Daniels Midland and other neighboring firms such as Caterpillar, and he also teaches undergraduate seniors in the University’s College of Business. Both groups of students use @RISK to learn advanced financial analysis techniques using Monte Carlo simulation.
Dr. Joaquin is an advocate of Monte Carlo simulation and @RISK because they offer a pragmatic approach to dealing with the uncertainties that are inherent in any business decision: “Since the future is unknown,” he says, “it would be implausible to use point estimates to represent future values of critical success factors. Range estimates are an improvement, but @RISK is even better because it is able to reflect the important fact that some values within the plausible range may be more likely than others. More than that, the correlation capability of @RISK allows the analyst to model the fact that co-movements of variables in the same direction may not be as likely as co-movements in the opposite direction.”
» Read the complete story
» More about Dr. Domingo Castelo Joaquin
Just like Excel itself, @RISK does its work
without involving you in its computational
complexities. So students who may have
been scared of stats and data analysis
before can feel perfectly at ease creating
their simulations––and so, they want to do
Dr. Domingo Castelo Joaquin, College of Business,
Illinois State University
Over 60,000 students use the DecisionTools Suite annually in their MBA and graduate level programs. In 2012, 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:
||Brigham Young University|
Case Western Reserve University
Colorado School of Mines
Oregon State University
UCSC Extension in Silicon Valley
Université de Sherbrooke
University of Alabama in Huntsville
University of Alberta
University of British Columbia
University of Missouri, Columbia
University of New Mexico
University of Rochester
University of Tulsa
Valdosta State University
Virginia Commonwealth University
Washington State University
Western New England University
||DTU National Food Institute - Denmark |
EAE Institucion Superior de Formacion Universitaria SL - Spain
Erasmus University - Netherlands
Escola Politécnica da UFRJ - Brazil
Escuela Colombiana de Ingeniería Julio Garavito - Colombia
Glasgow Caledonian University - United Kingdom
Gordon Institute of Business Science - South Africa
Indian Institute of Technology - India
Instituto Educativo del Noroeste A.C. - Mexico
Peking University - China
Queensland University of Technology - Australia
The Kuehne Logistics University - Germany
Universidad Iberoamericana Ciudad de Mexico - Mexico
Universidade Nove de Julho - UNINOVE - Brazil
Università degli Studi Bresc - Italy
University of Economics Prague - Czech Republic
University of Haifa - Israel
University of Lubljana - Slovenia
University of Teesside - United Kingdom
University of Westminster - United Kingdom
WHU - Otto Beisheim School of Management - Germany
Wirtschaftsuniversitaet Wien - Austria
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 6.0 for your course by contacting:
Palisade Academic Sales
800-432-7475 / 607-277-8000
I encourage all students, even those not
working with me, to learn to use
DecisionTools; I find the platform
particularly useful to model
sustainability issues given the uncertainty
around several variables.
Dr. Nagaraj "Naga" Sivasubramaniam,
Palumbo Donahue School of Business,
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.
Hedging with Futures
Excerpted from Financial Models Using Simulation and Optimization, by Wayne L. Winston, published by Palisade
Companies can hedge commodity and
exchange risk with futures. The natural question is, of course, how many futures do you need to buy to adequately hedge your risk? In this example we show how to use @RISK to determine optimal hedging policies. Our goal will be to choose a hedging policy that minimizes the standard deviation of our total costs.
Download the example spreadsheet and
RiskCollect is one of several distribution property functions offered in @RISK. RiskCollect() identifies specific distribution functions whose samples are collected during a simulation and whose:
- statistics are displayed
- data points are available
- sensitivities and scenario values are calculated
When RiskCollect is used and Inputs Marked With Collect is selected for Collect Distribution Samples in the Simulation Settings dialog, only functions identified by RiskCollect are displayed in the Results Summary Window Explorer list.
RiskCollect is typically used when a large number of distribution functions are present in a simulated worksheet, but sensitivities and scenario analyses are desired on only a pre-identified subset of important distributions. It can also be used to bypass Windows memory constraints, that keep sensitivities and scenario analyses from being performed on all functions in a large simulation.
» See more in the @RISK manual
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.
Statistics for Business and Economics
By David R. Anderson, Dennis J. Sweeney, and Thomas A. Williams
This market-leading text from well-respected authors Anderson/Sweeney/Williams introduces sound statistical methodology within a strong applications setting. A wealth of real business examples, proven methods, and application exercises clearly demonstrate how statistical results provide insights into business decisions and present solutions to contemporary business problems. Comprehensive coverage, trusted for its accuracy, allows you to select the topics best for your course, including coverage of the latest statistical and business software to manage statistical information. This edition's accessible approach is strengthened with the innovative new CengageNOW integrated online course management and learning system that saves you time while using personalized study plans to ensure student understanding. This title is available with DecisionTools Suite and StatTools software for Excel.
» Learn more from the publisher
» See a list of books bundled with Palisade software
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.
A participatory approach for
integrating risk assessment
into rural decision-making:
A case study in Santa Catarina, Brazil
Ivan Luiz Zilli Bacic, Arnold K. Bregt, David G. Rossiter
Incomplete information is one of the main constraints for decision-making, which are then
by definition risky. In this study, formal risk concepts were introduced in decision-makers_
meetings according to local demands and following a participatory approach, as a first step towards integrating risk assessment into rural decision-making in Santa Catarina, Brazil. Semi-structured interviews and meetings were conducted with extensionists and farmers. The following information was presented and discussed: (1) the time series and frequency distribution of maize yield predictions, simulated by the GAPS computer program for 16 feasible planting dates, representing climatic risks, both within and between years; and (2) a simple economic analysis (gross margin) and income probabilities for seven land-use options over a recent five-year period, followed by an interactive exercise where probabilities of achieving user-supplied target gross margins were calculated according to participants_ actual information, using the computer program @RISK. This paper also investigates decision-makers_ attitudes towards risk, and how these were influenced by objective information.
Read the full paper here
Experts using Palisade software share examples and teaching tips. Register online at no charge.
Portfolio Management using @RISK
To be presented by Matt Rosenberg, RoseCap Investment Advisors
January 17, 2013, 11:00am EST (Eastern Standard Time)
In this complimentary live webcast, Matt Rosenberg will show the benefits of using Monte Carlo simulation in the processes of portfolio construction, and portfolio management for individuals, families and institutional investors. Topics will include a general overview of the portfolio management processes, as well as specific examples showing the use of @RISK for risk management within these processes.
» Read more details about the webcast and register here
@RISK for Engineers
To be presented by Andre Kleyner, Delphi Corporation
March 28, 2013, 11:00am EST (Eastern Standard Time)
This webcast is intended to show the benefits of using Monte Carlo simulation by various types of engineers including design, systems, quality, and reliability. In many cases design parameters are random variables, which makes quality, reliability and performance of the product susceptible to variation. Dr. Kleyner will share his experience of applying @RISK in his engineering practice including Six Sigma applications as well as to teaching Monte Carlo simulation to engineering students.
» Read more details about the webcast and register here
» 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
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