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2010/1 Module Catalogue
Module Provider: Economics Short Name: ECO3029
Level: HE3 Module Co-ordinator: NEWMAN ME Mrs (Economics)
Number of credits: 30 Number of ECTS credits: 15
Module Availability
All Year
Assessment Pattern
Unit(s) of Assessment

Weighting Towards Module Mark (%)

3 Hour Examination




Qualifying Condition(s)
A weighted aggregated average of 40% is required to pass the module.
Module Overview

The module is an introduction to the principles and the practice of model building and making forecasts to aid decisions in business and economics.

ECO2031 and ECO2038
Module Aims

(a) The module explores solution methods for the class of optimisation problems in business and economics known as Operations Research. Different algorithms for solving each problem are considered and we make use of appropriate computer software to obtain practical solutions to problems. The emphasis is on model formulation and solution interpretation. 
(b) The module examines the principles and the practice of making forecasts to aid decisions in business and economics. We look at different approaches to forecasting and develop the relevant techniques. Suitable computer software is used to build forecasting models and make and assess forecasts.

Learning Outcomes

By the end of the module students will: 

  • Describe the different algorithms available to solve various problems  
  • Formulate practical problems precise as optimisation problems
  • Solve small applied problems by hand
  • Solve larger applied problems with the aid of a computer
  • Be able to identify appropriate forecasting models for a variety of situations
  • Be proficient in the application of different forecasting methods 
  • Have a good understanding of the statistical properties of ARIMA and macroeconomic forecasting models
  • Be aware of the limitations of forecast results.
Module Content
The following is an indication of the topics to be covered:-
  • Linear Programming. Optimisation subject to constraints. The simplex method.
  • Transportation problems.
  • Project planning and scheduling. Critical Path and PERT.
  • Inventory management. Deterministic and probabilistic cases.
  • Decision Analysis
  • Markov Analysis
  • Forecasting trends and cycles
  • Box-Jenkins methodology
  • Forecasting seasonal components
  • Macroeconomic forecasting
  • Forecast evaluation and combining forecasts
  • Smoothing methods.
Methods of Teaching/Learning

Lectures (30 hrs) and Computer Lab Classes (10 hrs)

Selected Texts/Journals

Taha, H. A. Operations Research – an introduction, 8th ed., Prentice Hall (2007)

Hillier, S & Lieberman, G An Introduction to Operations Research 8th ed., McGraw Hill, (2005).

Dennis, T L & L B Dennis, Management Science, West Publishing Company (1991).

Baumol, W J, Economic Theory and Operations Analysis, Prentice Hall (Latest edition).

Daellenbach, H G, George, J A & NcNickle D C, Introduction to Operations Research Techniques, Allyn and Bacon (1983).

Diebold, F. Elements of Forecasting. Thomson South-Western (latest edition).

Makridakis, S. Wheelweright , S. and Hyndman, R. Forecasting Methods and Applications, 4th edition, John Wiley & Son (2008).
Forecasting Principles and Applications, McGraw-Hill (1998).

Last Updated

5 October 2010