190 COURSE DESCRIPTIONS: QUANTITAVE METHODS
High school mathematics
14.9 QUANTITATIVE METHODS
30A00210 Mathematics and Statistics for
Managers (6 cr)
Responsible teacher:
N.N.
Status of the Course:
Compulsory course
Level of the Course:
Fundamentals of Business Knowledge
Teaching period:
I-II
Learning Outcomes:
Learn to understand and use basic mathematical
and statistical tools in solving and model-
ing problems in economics and business. Provide
skills for reading literature in economics and
management science.
Content:
Mathematics: basic concepts of functions, vectors,
matrices, systems of linear equations, linear pro-
gramming. Statistics: population and sample,
graphical data analysis, descriptive statistics, in-
troduction to regression analysis, random num-
bers.
Assessment Methods and Criteria:
1. Lectures in mathematics 21 h and lectures in
statistics 21 h.
2. Exercises 12 h in mathematics and 12 h in
statistics.
3. The course can be completed by doing the
exercises (20% of the final grade) and passing
two midterm exams (80% of the final grade),
or by passing the final exam.
Literature:
Knut Sydster and Peter Hammond (2008) Es-
sential mathematics for economic analysis 3rd
edition. ; Pace, L. (2010) Statistical Analysis Using
Excel 2007.
Study Material:
Complementary/alternative readings: Simon, C.P.
& Blume, L.: Mathematics for Economists
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/30A00210/
Prerequisites
Evaluation:
0-5
Registration for Courses:
Via WebOodi
Language of Instruction:
English
Further Information:
Only one of the courses 30A00110 Matematiikkaa
ja tilastotiedett liikkeenjohtajille and 30A00210
Mathematics and statistics for managers can be
included in the Bachelors degree.
30A00410 Quantitative Business Analysis (6 cr)
Responsible teacher:
Dr. Pekka Malo and N.N.
Status of the Course:
Compulsory course
Level of the Course:
Fundamentals of Business Knowledge
Learning Outcomes:
To improve mathematical and statistical skills for
problem solving, and to create theoretical founda-
tions for further studies and understanding eco-
nomic reference texts. This course is a continuum
for Mathematics and Statistics for Managers
(30A00210).
Content:
Mathematics: derivative and partial derivative,
integral calculus, foundations of unconstrained
optimization and constrained optimization. Statis-
tics: inference based on probability, conditional
probability and Bayes formula. Random variable
and its distribution, expectation, variance and
standard deviation, decision trees, descriptive
statistics, confidence intervals and hypothesis
testing.
Assessment Methods and Criteria:
1. Lectures in mathematics 21 h, Dr. Pekka Malo.
and lectures in statistics 21 h, N.N.
2. Exercises in mathematics 12 h, N.N..
and exercises in statistics 12 h, N.N.
3. The course can be completed by doing the
exercises (20% of the final grade) and passing
two midterm exams (80% of the final grade)
or by passing the final exam.
Literature:
 COURSE DESCRIPTIONS: QUANTITAVE METHODS 191

Knut Sydster and Peter Hammond (2008) Es- Content:

sential mathematics for economic analysis 3rd Probability, conditional probability, decision
edition. ; Pace, L. (2010) Statistical Analysis Using trees, probability distributions, estimation, hy-
Excel 2007. pothesis testing. Introduction to regression analy-
sis, analysis of variance.
Study Material:
Complementary/alternative readings: Simon, C.P. Assessment Methods and Criteria:
& Blume, L.: Mathematics for Economists, W.W. 1. Lectures 40 h, Jan-Otto Malmberg.
Norton & Co, 1994. 2. Exercises 20 h, N.N.
3. The course can be completed by doing the
Course Homepage: exercises (20% of the final grade) and passing
https://noppa.aalto.fi/noppa/kurssi/30A00410/ two midterm exams (80% of the final grade)
or by passing the final exam.
Prerequisites:
30A00210 Mathematics and statistics for manag- Literature:
ers Levine, David M. (2006) Business statistics a first
course. ISBN 0131971018
Evaluation:
0-5 Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/30C00100/
Registration for Courses:
Via WebOodi Prerequisites:
Compulsory courses in quantitative methods
Language of Instruction:
English Evaluation:
0-5
Further Information:
Only one of the courses 30A00310 Kvantitatii- Registration for Courses:
vinen analyysi taloustieteiss and 30A00410 Via WebOodi
Quantitative business analysis can be included in
the Bachelors degree. Language of Instruction:
English
30C00100 Statistical Analysis (6 cr)
30C00200 Econometrics (6 cr)
Responsible teacher:
Jan-Otto Malmberg Responsible teacher:
Professor Timo Kuosmanen
Status of the Course:
BT BSc program, common program studies Status of the Course:
B.Sc., finance (Taloushallinto) B.Sc., business technology, specialization studies
B.Sc., economics program
Level of the Course: B.Sc., finance (Taloushallinto)
Intermediate
Level of the Course:
Teaching period: Intermediate
III - IV
Teaching period:
Workload: III
- Lectures 40 h
- Exercises 20 h Workload:
- Independent work 102 h - Lectures 40 h
Total 162 h - Exercises 20 h
- Independent work 102 h
Learning Outcomes: - Total 162 h
The course will provide students with additional
knowledge in statistical theory and techniques. Learning Outcomes:
192 COURSE DESCRIPTIONS: QUANTITAVE METHODS
The main objective of the course is to obtain a
basic understanding of the econometric method.
The course focuses on least squares estimation
and related statistical inferences. The assumptions
of least squares estimation will be critically inves-
tigated, and possible ways to alleviate the assump-
tions will be explored.
Content:
Linear regression model and its assumptions,
least squares estimation, tests of parameters and
linear restrictions, endogeneity and instrumental
variables, heteroskedasticity and autocorrelation.
Introduction to maximum likelihood estimation of
discrete choice models and limited dependent
variables. Introduction to time series and panel
data models. All topics are examined by means of
economic examples with real empirical data.
Assessment Methods and Criteria:
1. Lectures 40 h, Timo Kuosmanen
2. Exercises and demonstrations 20 h, Antti
Saastamoinen
3. Grading is based on exercises (30%) and the
final exam (70%).
Literature:
Dougherty, Christopher (2007) Introduction to
econometrics. ISBN 9780199280964
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/30C00200/
Prerequisites:
Compulsory courses in quantitative methods
Evaluation:
0-5
Registration for Courses:
Via WebOodi
Language of Instruction:
English
30C00300 Mathematical Methods for
Economists (6 cr)
Responsible teacher:
N.N
Status of the Course:
BSc, BT program, specialization studies
BSc, economics program
Level of the Course:
Intermediate
Teaching period:
III - IV
Workload:
Contact hours 62 h and autonomous work 100 h
Learning Outcomes:
To improve mathematical skills acquired in the
basic courses
Content:
The course concentrates on mathematical meth-
ods useful in economics and business. The topics
covered are essentials of set theory, matrix alge-
bra, multivariate calculus, optimization, introduc-
tion to dynamics: difference and differential equa-
tions. The applications of the course will cover
different areas in economics and management,
finance, business technology and logistics. Com-
puters are used to solve some of the problems.
Assessment Methods and Criteria:
1. 40 h lectures + 22 h exercises + 20 h optional
instruction sessions.
2. The course can be completed by doing exer-
cises (20% of the final grade) and by pssing
two midterm exams (80% of the final grade)
or by passing the final exam.
Literature:
Simon, Carl P. and Blume, Lawrence (1994)
Mathematics for Economists. ISBN 0393957330 ;
Sydsaeter K., Hammond P., Seierstad A., Strom A.
(2008) Further mathematics for economic analy-
sis, 2nd edition. ; Sydster, K. & Hammond, P
(2008) Essential Mathematics for Economic
Analysis, 3rd edition.
Study Material:
Lecture notes
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/30C00300/
Prerequisites:
Compulsory courses in quantitative methods
Evaluation:
0-5
Registration for Courses:
Via WebOodi
Language of Instruction:
English
30C00400 Tools for Business Decisions 2 (6 cr)
 COURSE DESCRIPTIONS: QUANTITAVE METHODS 193

Responsible teacher: Status of the Course:

N.N Elective course. This course is intended both for
master's and doctoral students.
Status of the Course:
Bachelors program in Business Technology, Level of the Course:
common program studies Advanced

Level of the Course: Teaching period:

Intermediate studies Summer 2012

Teaching period: Workload:

IV - lectures 42 h
- individual work 120 h
Workload:
- Lectures 42 h Learning Outcomes:
- Independent work 120 h The objective of the course is to acquaint students
with optimization methods for single and multiple
Learning Outcomes: objective problems. Both classical and evolution-
To familiarize the students with useful analytical ary algorithms for optimization are discussed.
tools applied to practical business decisions.
Content:
Content: Introduction to optimality conditions, classical
Decision making under uncertainty, utility theory, optimization methods, constraint handling basics,
multiple criteria decision making, waiting line introduction to evolutionary optimization (EO),
models, simulation, with cases. Modeling with cases studies from real-world problems, custom-
spreadsheets and add-inns. ized EO, uncertainty based EO, robust and relia-
bility based EO, multi-objective EO, innovation
Assessment Methods and Criteria: through optimization, and decision-making.
1. Lectures and demonstrations 42h Assessment Methods and Criteria:
2. Exercises/cases and final exam
1. Lectures and participation (10 %)
Literature: 2. Exercises (20 %)
3. Project (20 %)
Anderson, D.R., Sweeney, D.J., and Williams, T.A. 4. Exam (50 %)
(2010) An Introduction to Management Science.
ISBN 978-1439043271 Literature:
Study Material: 1. Bazaraa, M. S., Sherali, H. D. and Shetty, C. M.
(2004). Nonlinear programming: Theorey and
PP-slides, handouts, cases/exercises, textbook algorithms. Wliey: London.
2. Deb, K. (2001). Multi-objective optimization
Course Homepage: using evolutionary algorithms. Wiley: London.
https://noppa.aalto.fi/noppa/kurssi/30C00400/
Study Material:
Evaluation: Lecture slides, handouts, exercises, textbook.
0-5
Course Homepage:
Registration for Courses: https://noppa.aalto.fi/noppa/kurssi/30E00150/
Via WebOodi
Evaluation:
Language of Instruction: 0-5
English
Registration for Courses:
30E00150 Applied Optimization and
Methodologies (6 cr) Via WebOodi

Responsible teacher: Language of Instruction:

Kalyanmoy Deb English
194 COURSE DESCRIPTIONS: QUANTITAVE METHODS

Prerequisites:
30E00400 Simulation (6 cr) Undergraduate mathematics, statistics and prob-
ability, as well as Excel skills. More specifically,
Responsible teacher: basic knowledge in matrix algebra, differential
prof. Tomi Seppl and integral calculus, statistical analysis and
probability distributions are essential.
Status of the Course:
Evaluation:
M.Sc.(Econ), Information and Service Manage-
ment program, elective course of advanced spe- 0-5
cialization studies.
Registration for Courses:
Level of the Course: Via WebOodi
Advanced
Language of Instruction:
Teaching period: English
I
Further Information:
Workload: Lectures and exercises in period I.
- Lectures 40 h Project work and project presentations in period
- Exercises 20 h II.
- Project 50 h
- Independent work 52 h 30E00500 Quantitative Empirical Research (6 cr)

Learning Outcomes: Responsible teacher:

To acquaint the student with modeling using sim- Prof. Pekka Korhonen and Dr. Pekka Malo
ulation techniques which can be usedto support
management decision making, especially in fi- Status of the Course:
nance, operations management, and logistics; Common Scientific Doctoral Studies
to develop expertise in using simulation models Masters degree, Minor studies in Quantitative
with computers and related software,especially Methods
Excel;
to give you experience in analyzing results and Level of the Course:
making decisions through assigned homework
exercises and case analyses. Advanced

Content: Teaching period:

Introduction to simulation models, simulation in IV
Excel, random numbers, methods to simulate
random events, managerial applications of risk Workload:
analysis, Wiener process, valuation of stocks and - Lectures 40 h
options, system simulation, forecasting, advanced - Exercises 20 h
simulation techniques. - Independent work 102 h

Assessment Methods and Criteria: Learning Outcomes:

1. Lectures 40 h
2. Exercises 20 h
3. The grade consists of final exam (50%), exer-
cises (20%) and project work (30%).
Literature:
Evans, J.R. & Olson, D.L. (2002) Introduction to
simulation and risk analysis. ; Vose, D. (2000)
Risk analysis: a quantitative guide. ; Ross, Shel-
don M. (2006) Simulation. ISBN 9780125980630
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/30E00400/
https://noppa.aalto.fi/noppa/kurssi/30C00400/
The objective of the course is to enable the stu-
dents to use quantitative data analysis techniques
in business and economic research. The course
will provide the students with a set of tools useful
in empirical research.
Content:
Basic concepts, screening data, and visualizing
multivariate observations are discussed. Further-
more, the course will define and introduce a set of
statistical multivariate methods and explain when
their use is appropriate and how they are related
to each other. Some of the methods covered are
linear regression, logistic regression analysis,
 COURSE DESCRIPTIONS: QUANTITAVE METHODS
principal component analysis, factor analysis,
analysis of variance, and cluster analysis. Method-
ological aspects and interpretation of analysis are
also explained. Excel and SAS programs will be
used in exercises and demonstrations during the
course.
Assessment Methods and Criteria:
1. Preliminary assignments
2. Lectures 42 h
3. Exercises 18 h
4. Grading is based on a final exam (80% of the
grade) and exercises (20% of the grade)
Literature:
Sharma, Subhash (1996) Applied multivariate
techniques. ISBN 0-471-31064-6 ; Hair J.H., Tat-
ham R.L., Anderson R.E.A., Black W. (1998) Mul-
tivariate data analysis. ISBN 0138948585
Study Material:
Other material announced by the lecturers.
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/30E00500/
https://noppa.aalto.fi/noppa/kurssi/30C00500/
Prerequisites:
Basic knowledge in mathematics and statistics is
assumed. Moreover, basic knowledge in linear
algebra and statistical analysis are recommended.
Evaluation:
0-5
Registration for Courses:
Via Weboodi
Language of Instruction:
English
30E00700 Advanced Statistical Methods (6 cr)
Responsible teacher:
Prof. Tomi Seppl
Status of the Course:
M.Sc.(Econ), Information and Service Manage-
ment program, elective course of advanced spe-
cialization studies.
M.Sc.(Econ), finance program, advanced speciali-
zation studies.
Level of the Course:
Advanced
Teaching period:
195
III
Workload:
- Lectures 40 h
- Exercises 20 h
- Project 50 h
- Independent work 52 h
Learning Outcomes:
To expand and deepen the students knowledge of
and ability to use regression and time series anal-
ysis with applications to business, finance and
economics.
Content:
Topics in linear models and Time Series analysis:
special estimation methods of regression models,
ARMA models, forecasting, cointegration, ARCH
and GARCH models. The content may change
from year to year.
Assessment Methods and Criteria:
1. Lectures 40 h, professor Tomi Seppl
2. Exercises 20 h, Tomi Seppl
3. The grade consists of a final exam (50%), ex-
ercises (20%) and a project (30%).
Literature:
Brooks, Chris (2008) Introductory econometrics
for finance, 2nd edition. ISBN 0-521-79018-2 ;
Verbeek, Marno (2004) Guide to modern econo-
metrics. ISBN 978-0-470-85773-1 ; Enders, Wal-
ter (2003) Applied Econometric Time Series, 2nd
Edition. ISBN 978-0471230656
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/30E00700/
https://noppa.aalto.fi/noppa/kurssi/30C00700/
Prerequisites:
Compulsory statistics and mathematics courses in
the Bachelors program, as well as at least one of
the following: introduction to econometrics, sta-
tistical analysis or simulation. It is important that
student knows the basics of statistical testing and
regression analysis prior to attending the course.
Other prior courses in quantitative areas are use-
ful, too.
Evaluation:
0-5
Registration for Courses:
Via Weboodi
Language of Instruction:
English
196 COURSE DESCRIPTIONS: QUANTITAVE METHODS
Further Information:
Lectures and exercises in period III.
Project work and project presentation in period IV
57C99901 Bachelors Thesis (10 cr)
Responsible teacher:
Assistant Professor, Ph.D. (econ.) Johanna Bragge
(with Merja Halme and Markku Kuula)
Status of the Course:
B.Sc. (Econ.), Business Technology program.
Level of the Course:
Compulsory program course.
Teaching period:
I-II (Autumn) and III-IV (Spring)
Workload:
- Independent scientific work: 267 h
- searching and reading literature
- formulating a research question
- (doing empirical analyses, gathering research
data)
- writing the thesis
Learning Outcomes:
The objective is to learn and practice independent
scientific thinking by setting up research ques-
tions and studying a specific topic. Students learn
to get to know references, to find literature, and to
apply it for resolving a research question. The
thesis will be a structured, scientific report.
Content:
The Bachelors Thesis is carried out together with
Bachelors Thesis Seminar (57C99902)
Assessment Methods and Criteria:
Grading: 85% of the grade is based on the thesis
and 15% is based on participation in the thesis
seminar.
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/57C99901/
Evaluation:
0-5
Registration for Courses:
Register to 57C99902 Bachelors Thesis Seminar
via Weboodi.
Language of Instruction:
English
57C99902 Bachelors Thesis Seminar (2 cr)
Responsible teacher:
Assistant Professor, Ph.D. (econ.) Johanna Bragge
(with Merja Halme and Markku Kuula)
Status of the Course:
B.Sc. (Econ.), Business Technology program.
Level of the Course:
Compulsory program course
Teaching period:
I-II (Autumn) and III-IV (Spring)
Workload:
- introductory lectures 8 h
- seminar sessions 14 h
- preparing for lectures 6 h
- preparing for seminar sessions 12 h
- doing assignments (research plan, research
profiling assignment) 13 h
Learning Outcomes:
The objective is to learn and practice independent
scientific work.
Content:
In the seminar, students get guidance in their
research for Bachelors Thesis. During the Thesis
seminar, students will prepare a research plan,
conduct a research profiling assignment, report
the progress of their Thesis, present and defend
their research results, act twice as an opponent,
and participate actively in seminar discussions.
Assessment Methods and Criteria:
3. Introductory lectures and seminar sessions 28
h
4. Requirements for passing the seminar: com-
pleting the research profiling assignment, pre-
senting own thesis at the seminar, acting twice
as an opponent, attending to 70% of the semi-
nar sessions
(Grading: Pass/Fail)
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/57C99902/
Evaluation:
Pass/Fail
Registration for Courses:
via WebOodi.
Language of Instruction:
 COURSE DESCRIPTIONS: QUANTITAVE METHODS
English
57C99903 Maturity Test (0 op)
Responsible teacher:
Thesis supervisor
Status of the Course:
B.Sc. (Econ.), Business Technology program.
Level of the Course:
Compulsory program course.
Teaching period:
I-II (Autumn) and III-IV (Spring)
Learning Outcomes:
After finalizing the Bachelors Thesis, students
carry out a proficiency test in mother tongue. The
objective is to show that a student can write an
essay in her or his mother tongue and that s/he
masters the basic concepts in her or his thesis. In
general, the test is written in Finnish, but non-
Finnish speakers are granted an exemption to
write the test in English.
Content:
The Maturity Test is taken at the end of the Bache-
lors Thesis Seminar (57C99902) and Bachelors
Thesis (57C99901). The test can be taken in con-
nection with any official exam, and the date is
agreed upon with the supervisor once the thesis is
written.
Assessment, Methods and Criteria:
Exam 4 h
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/57C99902
Evaluation:
Pass/Fail
Registration for Courses:
Register first to 57C99902 Bachelors Thesis Sem-
inar via WebOodi. Agree the date for the Profi-
ciency Test with the supervising teacher (after the
thesis is written).
57E00500 Business Intelligence (6 cr)
Responsible teacher:
Oana Velcu
Status of the Course:
M.Sc.(Econ), Information and Service Manage-
ment program, common advanced course
197
Level of the Course:
Specialization course
Teaching period:
12th March 2012 - 11th May (IV Spring)
Workload:
- Lectures 28 hours
- Preparing for lectures 56 hours
- Case studies 4.5 hours
- Preparing for case studies 14 hours
- Preparing for exercises 10 hours
- Computer labs 4.5 hours
- Preparing for computer labs 9 hours
- Preparing for exam 30 hours
- Exam 4 hours
Learning Outcomes:
After the course, the students will understand the
connection between the analytical tools that can
be used on real data in companies and the strate-
gic decision-making. The students will have ana-
lytical skills that enable them to work with the
data, to understand it and turn it into intelligence
for particular decisional contexts.
Content:
The course seeks to provide a balanced approach
to BI by enabling insight into the building blocks
of BI, such as data management, querying, analyt-
ic tools, quantitative modeling, and reporting,
with the purpose to enable students acquire theo-
retical and practical understanding of decision-
making and problem solving.
Assessment Methods and Criteria:
4. Exam 60%
5. Case study essays 20%
6. Exercises 20%
Literature:
Turban, Efraim, Sharda R., and Delen, D. (2011)
Decision support and business intelligence sys-
tems 9th ed.. ISBN 0132453231
Study Material:
Other research papers and material provided by
lecturers.
Course Homepage:
https://noppa.aalto.fi/noppa/kurssi/57E00500/
Evaluation:
0-5
Registration for Courses:
198 COURSE DESCRIPTIONS: QUANTITAVE METHODS

Via WebOodi Content:

In the seminar, students get guidance in their
Language of Instruction: research for Masters Thesis. There are lecturers
English on methods and theories of study in IS, MS and
OR.
57E99901 Masters Thesis (30 cr)
Assessment Me Course Homepage:
Status of the Course: https://noppa.aalto.fi/noppa/kurssi/38E00100/
M.Sc.(Econ), Information and Service Manage-
ment program, compulsory course. thods and Criteria:
Lectures, presentations and critique of other stu-
Level of the Course: dents work. If necessary, students will be orga-
Advanced nized into smaller groups supervised by professors
from the department of Information and Service
Learning Outcomes: Economy.
The objective is to practice independent scientific Course Homepage:
thinking by setting up research questions and
studying a specific research topic. The thesis will https://noppa.aalto.fi/noppa/kurssi/57E99902
be a structured, scientific report.
Evaluation:
Course Homepage: hyvksytty/hyltty
https://noppa.aalto.fi/noppa/kurssi/57E99901/
Registration for Courses:
Evaluation: Via WebOodi
0-5
Language of Instruction:
Further Information: English
The Masters Thesis needs to be carried out to-
gether with the Masters Thesis Seminar 57E99903 Maturity Test (0 op)
(57E99902).
Status of the Course:
57E99902 Masters Thesis Seminar (0 cr) M.Sc.(Econ), Information and Service Manage-
ment program, compulsory course.
Responsible teacher:
Matti Rossi (coordinates) Level of the Course:
Advanced
Status of the Course:
M.Sc.(Econ), Information and Service Manage- Learning Outcomes:
ment program, compulsory course. After finalizing the Masters Thesis, students carry
out a proficiency test in Mother Tongue. The ob-
Level of the Course: jective is to show a student can write an essay in
Advanced her or his mother tongue and that she or he knows
the basic concepts in her or his Thesis.
Teaching period:
Evaluation:
I - IV
hyvksytty/hyltty
Workload:
- 6 h presentations
- 4 h critique
- 20 h seminars

Learning Outcomes:
The objective is to practice independent scientific
thinking by setting up research questions and
studying a specific research topic. The thesis will
be a structured, scientific report.