Strengthening the connections: The impact of Monte Carlo simulation on the entrepreneurial mindset of engineering undergraduates

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Authors
Lynch, Adam Carlton
Cupertino, Pedro Cordeiro Povoa
Chikwendu, Daniel Ikechukwu
Subramaniam, Sivaganeshwar
Alagiri, Siddharth
Advisors
Issue Date
2024-03
Type
Conference paper
Keywords
KEEN Entrepreneurial mindset , Project-based learning , Financial decision-making
Research Projects
Organizational Units
Journal Issue
Citation
Lynch, A.C., Cupertino P.C.P., Chikwendu, D.I., Subramaniam, S., Alagiri, S. (2024) 80-88 Strengthening the connections: The impact of monte carlo simulation on the entrepreneurial mindset of engineering undergraduates https://doi.org/10.62704/10057/28725
Abstract

This study explores the integration of financial modeling into the curriculum of engineering decision analysis, to enhance student learning, while preparing them for real-world challenges. We employed frameworks from the Kern Entrepreneurial Engineering Network (KEEN), the Society of Decision Professionals (SDP), and the Corporate Finance Institute (CFI). Undergraduate engineering students participated in a two-phase project: Phase 1 involved creating a 3-Statement Financial Model which consists of Income Statement, Balance Sheet, & Statement of Cash Flows, while Phase 2 expanded this model's complexity. Students conducted discrete scenario analyses and incorporated Monte Carlo simulations to assess financial outcomes under uncertainty. Verification and validation processes ensured model accuracy and reliability. The study demonstrated significant improvements in students' decision-making and practical skills, bridging engineering and finance. In the future, we will explore the relationship between engineering, finance, operations research, marketing, and innovation management. The use of SDP and CFI materials facilitated a robust learning experience, improving student’s risk management and ability to make informed decisions. The interdisciplinary approach fostered collaboration, critical thinking, and entrepreneurial mindset. The methodology provided a scalable template for integrating financial modeling into various educational settings, to benefit both academic pedagogy and industry practices. The findings show the importance of experiential learning and interdisciplinary education in shaping proficient, adaptable professionals and engineering entrepreneurs. These insights can inform government policy, promote data-driven decisions in public sector projects, leading to effective and resilient policies.

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Description
Published in SOAR: Shocker Open Access Repository by Wichita State University Libraries Technical Services, November 2024. 2024 IEMS Officers: Gamal Weheba (Conference Chair); Hesham Mahgoub (Program Chair); Dalia Mahgoub (Technical Director); Ed Sawan (Publications Editor); Wilfredo Moscoso (Proceedings Editor); Abdulaziz G. Abdulaziz (Associate Editor)
Publisher
Industry, Engineering & Conference Management Systems Conference
Journal
Book Title
Series
Proceedings of the 2024 IEMS Conference
v.30
PubMed ID
ISSN
2690-3210 (print)
2690-3229 (online)
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