CIVL 302


Course Title and Number

CE 121 - Engineering Economy

Catalog Description

Analysis of alternatives by basic engineering economic methods and applications of basic statistics. An oral report on personal finance, Cassidy, or upper division project is required.


MATH 007C (as implied by other prerequisites); ECE 090, C E 020, M E 038, or CSCI 065; CMST 010 can be taken concurrently.

Textbook and Other Required Material

Newnan, Donald G., Engineering Economic Analysis, 6th edition, 1996, Engineering Press, 720 pp
Spiegel, Murray R., Schaum's Outline Series Theory and Problems of Probability

Course Objectives

The objectives of the course are to:

  • Teach students basic knowledge of engineering economy
  • Develop student's analytic ability to apply knowledge to the problem of evaluating alternatives
  • Enable the student to use and interpret statistics
  • Encourage students to communicate their work effectively

Topics Covered

  • Course Introduction
  • Basic Economic Relationships
  • Engineering Economic Analysis Methods
  • Practical Common Applications
  • Special Considerations, Inflation
  • The Role of Uncertainty
  • Basics of Statistical Distributions
  • Expected Value, Estimates
  • Hypothesis Testing
  • Regression, Curve Fitting
  • Simulation
  • Design of Experiments, Analysis of Variance


Students completing the course will be able to:

  • Complete computations and manipulations using the basic engineering economic equations
  • Use engineering economy to compare alternatives by the present worth methods, the annual cost method, the benefit and cost ratio method, and the rate of return method
  • Understand and apply the role of income tax and depreciation in making engineering economic decisions
  • Understand and use statistical data properly
  • Perform basic statistical hypothesis testing and understand the results
  • Have a general understanding of investment options

Class/Laboratory Schedule

One hundred minutes of lecture per week
One hundred minutes of activity per week

Contribution of Course to Meet the Professional Component

Engineering Science: Three units

This course meets the ABET criteria:

  • An ability to apply knowledge of mathematics, science, and engineering
  • An ability to design and conduct experiments as well as to analyze and interpret data
  • An ability to identify, formulate, and solve engineering problems
  • An understanding of professional and ethical responsibility
  • An ability to communicate effectively
  • The broad education necessary to understand the impact of engineering solutions in the global and societal context
  • A recognition of the need for, an ability to engage in lifelong learning
  • A knowledge of contemporary issues
  • An ability to use the techniques, skills, and modern engineering tools necessary for engineering practice

Relationship of Course to Program Objectives

The course supports the achievement of the following program objectives:

  • To provide a broad-based education in mathematics, the sciences, engineering sciences and design, and humanities and social sciences
  • To provide a rigorous, well balanced, comprehensive and contemporary curriculum stressing fundamentals common to many fields of civil engineering, and a general education component with breath and depth of study in humanities and social sciences
  • To develop skills of oral and written communication, critical thinking, and leadership which are important to a successful professional life
  • To provide an appreciation of the breath of the civil engineering profession and offer an opportunity for pursuit of depth in a special area of civil engineering
  • To prepare graduates for numerous options including graduate or professional school as well as entering the civil engineering profession
  • To instill in civil engineering majors a sense of good citizenship, community service, and ethical responsibility


12 homework assignments
2 mid-term examinations, 75 minutes each
1 final examination, 110 minutes
1 course project presented orally and in written format