Engineering Risk-Benefit Analysis
Lecture Notes
Acknowledgements
The lecture notes for Part II: Decision Analysis draw strongly on the 1978 course manual "Decision Analysis" by Professors Alvin Drake and Ralph Keeney. The notes for Part III: Cost-Benefit Analysis are derived from material first developed by Professor Amedeo Odoni.
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SES # |
TOPICS |
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Part 1: Reliability and probabilistic risk assessment (RPRA) |
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1 |
Introduction (PDF) RPRA 1: The logic of certainty (PDF) |
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2 |
RPRA 2: Elements of probability theory (PDF) |
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3 |
RPRA 3: Probability distributions (PDF) |
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4 |
RPRA 3: Probability distributions (cont.) |
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5 |
RPRA 4: Availability (PDF) |
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6 |
RPRA 5: Data and epistemic uncertainties; statistics (PDF) |
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7 |
RPRA 6: Probabilistic risk assessment (PDF) |
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8 |
RPRA 6: Probabilistic risk assessment (cont.) |
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9 |
RPRA 7: Risk management (PDF) |
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10 |
Guest lecture |
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11 |
Guest lecture |
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12 |
RPRA quiz |
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Part II: Decision analysis (DA) |
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13 |
DA 1: The multistage decision model (PDF) |
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14 |
DA 2: The value of perfect information (PDF) |
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15 |
DA 3: The axioms of rational behavior (PDF) |
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16 |
DA 4: Introduction to utility (PDF) DA 5: Risk aversion (PDF) |
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17 |
DA 6: Multiattribute utility theory (PDF) |
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18 |
DA 7: Decision analysis and risk management (PDF) |
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19 |
Guest lecture |
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20 |
DA quiz |
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Part III: Cost-benefit analysis (CBA) |
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21 |
CBA 1: Background and fundamental premises (PDF) |
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22 |
CBA 2: The time value of money (PDF) |
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23 |
CBA 3: Bases for comparison of alternatives (PDF) |
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24 |
CBA 4: Including uncertainty (PDF) |
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25 |
CBA 5: Evaluating public activities (PDF) |
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26 |
Guest lecture |
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27 |
CBA quiz |

