Time Construct May 4, 2016

Expressing Time in Terms of Storage Capacity Byte [ 8 bits] 0.1 bytes: a binary decision; 1 byte: a single character; 10 bytes: a single word; 100 bytes: a telegram ORr a punched card; Kilobyte [ 1,000 bytes OR 10 3 bytes] 1 Kilobyte: A very short story; 2 Kilobytes: A typewritten page; 10 Kilobytes: An encyclopaedic page OR a deck of punched cards; 10 Kilobytes: static web page; 50 Kilobytes: A compressed document image page; 100 Kilobytes: A low-resolution photograph; 200 Kilobytes: A box of punched cards; 500 Kilobytes: A very heavy box of punched cards; Megabyte [ 1,000,000 bytes OR 10 6 bytes] 1 Megabyte: A small novel OR a 3.5 inch floppy disk; 2 Megabytes: A high resolution photograph; 5 Megabytes: The complete works of Shakespeare OR 30 seconds of TV-quality video; 10 Megabytes: A minute of high-fidelity sound OR a digital chest X-ray; 20 Megabytes: A box of floppy disks; 50 Megabytes: A digital mammogram; 100 Megabytes: 1 meter of shelved books OR a two-volume encyclopaedic book; 200 Megabytes: A reel of 9-track tape OR an IBM 3480 cartridge tape; 500 Megabytes: A CD-ROM OR the hard disk of a PC; If the average word is 6 characters, Then the average word is 6 bytes. 500 Word Essay Therefore X 6 bytes = 3,000 bytes

Using Essay Structure as a Basis for Exchange 5 Paragraph Essay Structure

Visualizing an Essay in Conversational Form: 1 Topic Discussed Conversation

Calculating the Information Exchanged in a Conversation Interview BytesWordsSentenceParagraphEssay Bytes1-- Word61-- Sentence Paragraph Essay1, A Fact A Valid Point A Conversation

Total Information in an Essay Conversation Thesis Paragraph Central Thesis72 Reason 172 Reason 272 Reason 372 Synthesis72 Total Bytes360 Supporting Paragraph 1 Topic Sentence72 Support / Evidence72 Support / Evidence72 Support / Evidence72 Concluding Sentence72 Total Bytes360 Supporting Paragraph 2 Topic Sentence72 Support / Evidence72 Support / Evidence72 Support / Evidence72 Concluding Sentence72 Total Bytes360 Supporting Paragraph 3 Topic Sentence72 Support / Evidence72 Support / Evidence72 Support / Evidence72 Concluding Sentence72 Total Bytes360 Concluding Paragraph Central Thesis72 Reason 172 Reason 272 Reason 372 Synthesis72 Total Bytes360 Total Bytes in Essay1,800

Data Scales (for Reference) Conversation

Data Scales (for Reference) Conversation

The Purpose of Data Exchange To Establish Credibility Innovation

Example Data Set: Possible Investment Banking Interview Questions Credibility

Field of Possible Topics (Questions) Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Credibility

Example Phone Interview Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Credibility

Question & Answer: 1 st exchange Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Where you are from Why you chose your college Why you chose your major First exposure to financial markets Why you want to do banking Credibility

Question & Answer: 2 nd exchange Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Where you are from Why you chose your college Why you chose your major First exposure to financial markets Why you want to do banking High degree of responsibility Fast paced environment Develop multi- faceted skill sets Career advancement w/ no grad school Credibility

Question & Answer: 3 rd exchange Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Where you are from Why you chose your college Why you chose your major First exposure to financial markets Why you want to do banking High degree of responsibility Fast paced environment Develop multi- faceted skill sets Career advancement w/ no grad school Relative, Intrinsic Relative: EV / Rev, EV / EBITDA, P/E Rev = not profitable; PE = mature industry Credibility

Question & Answer: 4 th exchange Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Where you are from First exposure to financial markets Why you want to do banking High degree of responsibility Fast paced environment Develop multi- faceted skill sets Career advancement w/ no grad school Relative, Intrinsic Rev = not profitable; PE = mature industry Relative: EV / Rev, EV / EBITDA, P/E Why you chose your college Why you chose your major Develop growth and cost assumptions Adjust for non- cash expenses Unlever and re- lever beta Subtract cash and add debt to get to equity value Credibility

Total Data Requested Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Where you are from First exposure to financial markets Why you want to do banking High degree of responsibility Fast paced environment Develop multi- faceted skill sets Career advancement w/ no grad school Relative, Intrinsic Rev = not profitable; PE = mature industry Relative: EV / Rev, EV / EBITDA, P/E Why you chose your college Why you chose your major Develop growth and cost assumptions Adjust for non- cash expenses Unlever and re- lever beta Subtract cash and add debt to get to equity value 72 bytes Assume each question is 1 sentence, equivalent to 72 bytes 4 Questions Asked (of 234 possible questions) Equivalent to 288 Bytes (about 2 tweets, or 1 paragraph) Credibility

Total Data Submitted Technical Fit Investment Banking Interview Analytical / Attention to Detail (9) Background / Personal (12) Career Changer (9) Commitment (6) Culture (9) Future (6) Strengths / Weaknesses (12) Team / Leadership (12) Understanding Banking (9) “Warren Buffett” (18) “Why Banking?” (9) Accounting (30) Valuation (21) Enterprise / Equity Value (9) Discounted Cash Flow Analysis (18) Merger Model (21) LBO Model (18) Brain Teaser (2) Where you are from First exposure to financial markets Why you want to do banking High degree of responsibility Fast paced environment Develop multi- faceted skill sets Career advancement w/ no grad school Relative, Intrinsic Rev = not profitable; PE = mature industry Relative: EV / Rev, EV / EBITDA, P/E Why you chose your college Why you chose your major Develop growth and cost assumptions Adjust for non- cash expenses Unlever and re- lever beta Subtract cash and add debt to get to equity value Assume each answer is 2 sentences, equivalent to 144 bytes 144 bytes 16 answers submitted (equivalent to 2,304 bytes) Credibility

Interview = Proxy for Establishing Credibility Despite the realm of possible answers consisting of ~ 9 essays worth of data One only has the opportunity to submit ~1 essay worth of data to demonstrate credibility One is discredited if a submitted answer does not agree with a generally accepted body of knowledge Credibility

The Purpose of Data Exchange To Establish Credibility Innovation

Possible Field of Knowledge Innovation

My Field of Knowledge What I KnowWhat I Don’t Know Innovation

Why Networks Matter What I KnowWhat We Don’t Know What You Know Innovation

What the Status Quo Looks Like What I KnowWhat We Don’t Know What You Know What Our Society / Industry Knows Innovation

The Pursuit of Innovation What I KnowWhat We Don’t Know What You Know What Our Society / Industry Knows 30.6% Known 14.8% Unknown 30.6% Known 84.2% Known Innovation

Increased Knowledge (Data) Accumulation Increases Output and Lowers Costs 64.2% Unknown 35.8% Known Innovation

New Age Communication

Today, Data is Transmitted Faster than Ever Before

The New Era Today, if one has established credibility, even a small amount of data transmission can start a “storm” Recall: a tweet is only 140 bytes

Changing Times Establishing credibility and transmitting / exchanging ideas is critical in shaping society

What Do You Know? (and who is willing to trade what they know for what you know?)

What Human Interaction Looks Like Among a realm of possible information, 2 actors mutually test each other for compatibility 1 Together, they cover more ground than alone, exchanging data within / amongst networks 2

What Data Will You Mine?

Timescale: 1-Day Work EC SleepEC Prep

Timescale: 1-Day (cont.)