ASSIGNMENT 2: Hacking Macondo
Listen to “Cautionary Tales – The Spreadsheet of Life and Death”:
Online: https://timharford.com/2020/06/cautionary–tales–the–spreadsheet–of–life–and–death/ Spotify: https://open.spotify.com/episode/1dRoI8xrMiSPaKk3vmMhrE?si=DKzpX7mgSluQegvqVzlaMg Or your favorite podcast app.
You are the chief decision maker for the city of Macondo. The city has been struck by a horrendous insomnia plague. The most devastating symptom of the plague is not the impossibility of sleep, but rather the loss of ‘the name and notion of things’. The plague is contagious and spreads by person-toperson contact. The progressive breakdown of conceptual knowledge by the plague equates to using the statistical value of a Macondian life in assessing what to do.
You have to decide the following:
- Do you shut down the city? [yes/no]
- You choose that because the B/C (standard) is _______________.
- Your rivals, José Arcadio Buendía, Colonel Aureliano Buendía, and Úrsula Iguarán, form a public campaign against you. They state that each person is invaluable and that your statistical value of a Macondian life is ridiculous. You tell your public relations team that you want a campaign that lets the public know that while you agree life is invaluable, you have a practical job to do and if the statistical value of a Macondian life is only _____________ $K then you would go bankrupt as a country compared to the tax budget and borrowing capacity of Macondo in a given year.
- The main theme of the Cautionary Tales podcast is:
- Supply and demand
- Marginal utility
- Personal Rights and the Worth of Human Life vs Economics
- Death Insurance
- 100 years of solitude
- The total PW value as a Benefit to society of a shutdown is _________________ $B.
Facts about Macondo:
Sq mileage: 125 km2
Yearly tax income per Macondian: $23,000
Debt capacity (how much you can borrow): $3.9 B
Statistical Value of a Macondian Life: $150,000
Standard rate of evaluation in public sector economics: 15% per year, compounded monthly Estimate Cost per Month to Shut Down Macondo:
[costs shown in $B; a 10% increase per month occurs after month 1]
In addition to the costs shown, it will damage businesses and economic competitiveness, as well as psychological issues for the population of Macondo for years to come. Those costs are estimated to be $46 B in PW and count as a Disbenefit to society.
Estimated that it would take 12 months of quarantine and safety measures to eradicate the plague.
Estimated that the plague would spread by 12% each month without quarantine until month 4 when it would spread by 22% per month. The population could reach herd immunity once ½ the population has the plague.
Estimated that there are 15,000 people currently with the plague today. It is too late for them. Stopping the plague is measured by the number of people that do not get the plague after them and the value of those lives saved is a Benefit to society.
Description: “Without a gentle contempt for education no man’s education is complete.” – GK Chesterton
Make decisions that are best for your company. You use 10% to evaluate things unless told otherwise or it makes more sense to use a different value.
Listen to Episode 76 “Knaves Out” for the podcast Darknet Diaries:
Or online: https://darknetdiaries.com/episode/76/ or your fav podcast app.
You queue up your favorite hacking playlist and decide you need a new set of proxy servers. You are thinking about a loan. Which of these banks is best?
Bailout Banking Corp: 0.4% per month, compounded monthly
Giant Nationalized Bank: 7% per year, compounded quarterly
Bank of the One Percent: 7% per year, compounded monthly
Lendit & Takenrun: 1% per month, compounded semi-annually
To promote your services internationally, you’re putting a team together to compete in Pwn2Own, the best hacking contest in the world. A friend agrees to loan you the money to fund a team to win Pwn2Own and that loan is at 6% per year. What is the present worth cost for values presented above over 15 years? [answer assumed in $K]
You can make the following amounts shown in the graph below on an Urban Bangers hacking team, which you evaluate at 6% per year. To promote, market and contract the team, you will spend an equivalent future amount of $500,000 by year 9. Instead of Urban Bangers, your grandma tells you to buy a nice US Government Treasury Bond, which pays 3.5% per year.
[Amounts shown below in $K]
Which do you do? [Gov Bond! or Urban Bangers!] ______________________
You choose that option because that option makes you how much more than the other option? [$K]
Hack3 wants to get a good public appearance by establishing a scholarship fund for computer science.
Considering you evaluate at 5% per year, compounded annually for a trust, and you want to provide for 10 annual withdrawals that start at $6K and decrease by $500 each year. What is the difference between how much you gave out in scholarships vs how much you had in the account in the very beginning to start the scholarship trust? [So, you put in $X into an account and then in year 1 you take out $6K for the first scholarship, then $5.5K for the next one… on down to year 10. By year 10, you have given out $Y in scholarships in real money.]
You receive two competing buy-out offers for one of the service companies within Hack3. Offer 1 from Demrussos is $0 this year, $1000 at the end of the year 1, $2000 at the end of the 2nd year. . . , all the way to the 100th year. The competing offer from Chinoschavales is $3084 the first year +7.10% more each year after that, all the way for 100 years. At the end of the 100 years, evaluated at 9%, how much more $ did you get by accepting the Chinoschavales offer? [$K]
Dmitri Karamazov wants to change your mind about your choice above and wants you to select Demrussos. He walks up to you right now and offers you how much to change your mind? [$]
You make a custom VPN for a single-use project and it costs you $10K. Being a special-purpose custombuilt, it can only be resold as scrap at $500, no matter what its age. The daily operating costs are $2K for each of the first two days, with an increase of $600 per day thereafter. At 2% per day, how many days until you retire the VPN (remove it) if its revenue is $5K a day? You stop when the Profit is Maximized.
You move to Coyabo after a breakup, where inflation is high – roughly 11% per year. You took on an illadvised relationship with a co-worker, an engineer. That engineer hacked Hack3 after you broke up and that cost you about $35K in present worth. In addition to that cost, the engineer made it so that every email link you click on, regardless of computer, plays the song “Sure Don’t Miss You” by The Dip. The annoyance of that is the same as losing about $7K per year to you, every year for 5 years, starting in year 1 when the link hack began. But the annoyance increases by 12% per year thereafter (starting in year 6) and continues for the next 8 years, when you finally stop using the internet. Use a real interest rate of 15% per year and considering the entire 13 year timeframe, you decide to hit back by hacking the engineer and each time a link is clicked the engineer has to listen to “Tell Em I’m a Good Kisser” by Lake Street Dive. If that engineer gets annoyed each time that happens, and that annoyance is about the same as an $80 loss each time, then how many times per year do you need that person to be annoyed in order to breakeven vs your annoyance costs?
15.Early in the hack investigation discussed in the podcast, JPMorgan Chase Bank information security and management wanted to blame ________________, while the FBI was more focused on __________________.
- A nation state like Russia or China, a nation state like Ukraine or Belarus
- A nation state like Russia or China, a group of criminal actors unaffiliated with a nation
- A group of criminal actors unaffiliated with a nation, a firm hired by competing banks
- A firm hired by competing banks, a nation state like Russia or China E. The Imperial Alliance, Demrussos
Gery, Ziv, and Joshua made loads of money doing what before the hack?
- Phishing on elderly
- Stock market scams
- Publicly trading shell corporations
- Selling knock off CDs and cigarettes at international bridges