Software Engineering Economics¶
Frostburg State University · Summer 2026 Instructor: Dr. Zhijiang Chen
Welcome to Software Engineering Economics, an intensive course that equips software professionals with the financial and decision-analysis tools needed to evaluate, justify, and lead software investments.
Course at a Glance¶
| Item | Details |
|---|---|
| Term | Summer 2026 (Weeks 14–16) |
| Dates | June 3 – June 18, 2026 |
| Sessions | 16 sessions × 110 minutes |
| Time | 16:20 – 18:10 daily |
| Rooms | YF302 / YF108 / SY109 (see syllabus) |
| Instructor | Dr. Zhijiang Chen |
| Format | Lectures · in-class exercises · group project · final exam |
What You Will Learn¶
By the end of this course, you will be able to:
- Apply time-value-of-money techniques (PV, FV, NPV, IRR, payback, PI) to software investment decisions.
- Conduct break-even, sensitivity, and risk analyses under uncertainty.
- Estimate software cost and effort using Function Points and COCOMO II.
- Evaluate build vs. buy vs. reuse alternatives with Value-Based Software Engineering (VBSE).
- Reason about the economics of AI-assisted development — token costs, productivity impact, and ROI.
- Communicate economic reasoning to non-technical stakeholders.
Structure¶
The course is organized into three weeks:
- Week 14 — Foundations of Engineering Economics (Lectures 1–5)
- Week 15 — Decision Methods, Estimation & Strategic Decisions (Lectures 6–12)
- Week 16 — AI Economics, Student Presentations & Final Exam (Lectures 13–16)
See the Syllabus for the full schedule.
Assessment¶
| Component | Weight |
|---|---|
| Participation & in-class quizzes | 15% |
| Homework assignments | 25% |
| Group project & presentation | 30% |
| Final exam | 30% |
Textbook & References¶
- Boehm, B. W. (1981). Software Engineering Economics. Prentice Hall. (foundational reference)
- Boehm, B. W., et al. (2000). Software Cost Estimation with COCOMO II. Prentice Hall.
- Selected articles on Value-Based Software Engineering and AI economics (linked in each lecture).
How to Use This Site¶
- Browse lectures from the navigation menu on the left.
- Each lecture page contains: learning objectives, slides outline, worked examples, in-class exercises, and homework.
- All materials are open for student reference; the site source is on GitHub.
"Every software decision is, in the end, an economic decision." — adapted from Barry W. Boehm