The first period was devoted to a discussion of the loan problem. Students were
assigned to three-person teams, and each team was given (a) information about a
(different) particular loan in default (b) an Excel file with
partial records
from 
past attempted loan work-outs. A typical case was a
$4,000,000 loan to someone with a Bachelor's degree and four years business experience,
with economic conditions being normal. The bank can foreclose and receive
$1,850,000, or work out an arrangement, which, if it succeeds, will yield the entire
$4,000,000, but, if it fails, will yield only $200,000.
Each team was to give a report at the next class meeting on whether or not they would attempt a work-out for their case. The teams tried various approaches, but realized they did not know how to extract very much useful information from their data. Indeed, one group announced: ``We need to have some tools that will help use the data.''
For the next seven weeks the students were introduced to mathematical and computer tools of increasing sophistication that ultimately enabled each group to compute the expected value of a work-out attempt for their customer.
The course materials are in electronic hypertext format (using Microsoft Power Point), rather than on paper. There are several reasons for the choice of this format. (i) Hypertext gives students easy access to spreadsheet, word processing, and mathematics applications. (ii) It can be easily modified either by students (for their own notes) or faculty. (iii) The format demonstrates the quality of presentation expected from students and illustrates how technology works with mathematics. Sample screen shots of the materials are provided in Appendix 1.
Students are expected to hand in written assignments produced on a word processor, with all mathematics explained in complete English sentences, and with mathematical symbols and equations appropriately formatted. Sample work is provided in Appendix 2.