Friday, 7 June 2013

Arithmetic, Population Energy and Money

Arithmetic, Population Energy and Money
This Is my second blog and I would like to take you through some math and the importance of numbers in life especially percentages and doubling time with some psychology and news reading skills. As many of you know, I’m a math and Science enthusiast but now I’m inclined towards psychology too. First of all, we must understand that math is more than just numbers and it should be rightfully defined as the science of computing. When math is represented with discrete values it is called arithmetic and algebra when we use alphabets or symbols when you represent something broader, say a law or a theorem. We were all taught basic of mathematics in our schools and colleges, but we merely study them as subjects which are a part of our curriculum. We sometimes fail to recognize or acknowledge some simple relations we come across in our daily life that are governed by the same mathematics that we learnt, which if seen from the right perspective, is easier than you thought it was. I would like to inform you that All Global Problems are connected by Arithmetic. The article would also touch upon today’s speculative news market and how to read news article, though not in detail. The way I write will be very direct and I use only simple English, albeit, you may have to read a few sentences twice to understand what I mean to say.

Do not understand what you want to, but, what I want you to. I hope you like it.

The greatest short coming of the human race is our inability to understand the arithmetic exponential function. Yes..!!! Logarithmic and Exponential functions, by far the best means available in mathematics used to forecast or predict future trends and values are not understood by most of us. When an information passed from one person to another  the quality of information is maintained only when all the necessary data in the message is understood and interpreted by the listener. Most of our information that we depict today, are in terms of percentages. I hope everyone is well aware of percentages. Percentage merely describes anything that grows with time, increase by a fixed fraction for a fixed period of time. Even though the information travels in a very crisp manner, the listener/reader should still compute as to how much increase or decrease it actually is.

And then there is doubling time. Doubling time is the time taken for a particular quantity to become twice its magnitude.   Lets take 3 examples 

1. “A baby grows to twice its height if 2 – 3 years”.
2. “You will have twice the amount of homework to do if you spend the weekend watching movies and playing video games”.
3. “The world oil consumption doubled in the sixties”.

Now these are just mere examples which depict what a Doubling time is …. Or wait..!! Are they …???
NO. !!!
 Doubling time needs to be specific. It’s a measure of time. You need to quantize the time period for a quantity to double in its magnitude. The first statement somewhat tentatively conveys the message regarding the starting and the ending period. Start when the baby is born and end somewhere between 2-3 years.
The second example however does not talk about time period at all. You have to assume a lot of things to understand this. Firstly, you should be given home work on weekends and you should be given homework after the weekend. Third, you should be given the same amount of homework after the weekend. The third example is even more disastrous. It only has the word doubling time. It does not compare the consumption pattern to a previous time scale. It did not speak about what oil. It did not specify a particular time period as to when it actually doubled.
Now re-consider your thought process if you happened to be convinced with those three examples when you read it for the first time. Most of the news you see on TV or read on the papers today are baseless as the examples stated above. Now why do people fall for these news anyway?

Express it in percent, no one cares. Represent it as doubling time, and everyone is awestruck. Yes ..!!!!!



Invest in BANK A and your money will double in 6 and a half years.

Invest in BANK B and you will get 11.50% interest per annum. 





Which statement catches your eye ??  Well, for all the effort I’ve put in, I hope it is the first one.
However, the truth is that Bank B gives you slightly more than double the amount you invest in the same time period. All said and done, how do  you calculate doubling time ? You do not want to sit with a calculator when you read the news, do you? It is easier than you thought. Just divide 70 by the interest rate.  7% interest takes 10 yrs to double (70/7 =10).
So if you have Rs 100 today growing at 7%, it grows by another Rs 100 in 7 years and you end up having Rs 200 at the end of 10 years. The average world economy for the past 400 years has been steadily growing at something under 7%. I’m pretty much sure about this as I’ve read it somewhere sometime ago. Anyways, let us assume it to be so and let us go back 300 years. The Indian princely states had to pay an amount equivalent to Rs 100 at that time, as a yearly tax to the British.

 Rs 100 at 6.8%, doubles 30 times in 300 yrs,

 2 ^ 30 x 100 . It is something more than 100 Crore Rs or something less than $20 million. Now there was more than one princely state falling under the British rule in 1713 and the British made a lot of money. And $20 million per annum per state is sumptuous. Another piece of information Manhattan was purchased in 1626 fr 24$. Assuming a steady growth of 6.8%, Do the math.

Legend has it that the game of chess was invented by a mathematician who worked for a king. The king was very pleased with the invention of the game that he wanted to reward him. The mathematician said, “Well my king, my needs are modest. If you just take my chess board and on the first square place one grain of wheat. On the next square double the one to make two and on the next, double the two to make four. Just keep doubling till you reach the 64th square and that would pretty much suffice my needs and my family’s”. The king thought he was a fool and said “You fool, I was going to give you a real reward and you resort to some grains of wheat? “. Well let’s work it out and find whether the mathematician was actually a fool or not.
The table below is pretty simple to understand. The first column numbers the squares, the second column tells you how many grains are in the square and the third column shows the total number of grains in the chess board.
Square # Number
Grains on Square
Total Grains on the Board
1
1
1
2
2
3
3
4
7
4
8
15  (24 – 1)
5
16
31  (25 – 1)
.
.
.
.
.
.
63
262
263 – 1
64
263
264 – 1


Again I hope you don’t have any difficulties in understanding the table above. Let us identify a pattern here. Every new square has one grain more than the total number of grains on the entire chess board. The 2nd square has 2 grains which is one more than the total number of grains which were there, which was one. The 5th square has 16 grains which is one more than 15 which happens to be the sum of all grains till the previous square. And so the relation is obtained where n happens to be the Square# number and “ 2n – 1 “ is the number of grains n the square. So every time a quantity doubles it takes more than all that you’ve used before


So you have to understand that the whenever something doubles, it means that the production/consumption of that particular item is going to be more than what existed till date. Going back to the news which said, “The world oil consumption doubled in the sixties”, which actually meant crude oil, this statement says that the amount of oil consumed in the 1960s was more than what was consumed in the entire history of the earth till 1959.
The word population today is around over 7 billion. The population was 3.5 billion in 1968. So, in just 45 years, human beings have produced more off springs than the total number of off springs ever produced in the history of mankind which runs to 10s and 1000s of years. The frightening fact is that, we still continue to grow at close to 2% p.a. This means that we have also produce more food than what we have produced in the history of mankind. And also the space available per person on land has shrunken by slightly more than half and all of this has happened in just 45 years.  The picture depicts a rough timeline just for the sake of understanding it is not perfect to scale.


          Consider the black patch to be the timeline from 10000BC to today, it is to be noted that the first billion was achieved only in the starting of the 19th century and now we have a whopping 7 billion people in our planet. The thin blue line in the end depicts the last 45 years in which our population doubled.
Now, going back to the king and his chess master, exactly how much was the total amount of wheat grains on the chess board. “ 264 – 1” is just a little more than  400 times the 1990 world harvest of wheat. Oooooohhhh yeaahhh … !!!! IT IS .
Well this should feed his family till eternity.
Well, I think, this is precisely the reason why people are AWESTRUCK when something is depicted in terms of doubling time.

I’d like to finish this off with one more explanation. Bacterium multiplies by dividing into two. The two become four and the four become eight, sixteen and so on. Suppose you put them in a jar and the bacteria doubles every minute, the jar gets filled up in one hour.  Say, you place one bacterium inside a jar at 11 a.m in the morning, the jar gets filled at 12 noon. Easy to understand and I hope you are clear. The growth is constant and occurs in a finite environment. 



Now I’d like to ask you 3 questions:



1. When is the jar half full?
          Some of you may be surprised by the answer. It is exactly at 11:59 a.m. Just one minute before 12 noon, because, they double in number every minute and so, if you reduce a minute you’ll arrive at exactly half of what you had.

2. If you were the bacterium in it, at what time would you have realized that you’re running out of space?
           Well coming to think of this, a minute before 12 noon, the bottle is half full. Two minutes before, it’s a quarter full. Three minutes, 12.5% full. Well, jus 5 minutes before 12 noon, there is tremendous scope of growth as there is approximately 97% free space in the jar and how many of you are going to predict that you are going to be choked up in the next five minutes .????


Well then, let us consider that there are a few brainy bacteria inside the jar who predict this short coming and set to launch a search mission for new bottles. They are successful enough to find 3 new bottles. Now question 3.



3. How long do you think the bacteria can sustain after these bottles have been identified?

Well, at 12 noon you will have one bottle filled. At 12:01 p.m. the other bottle gets filled and at 12:02 p.m. all the four are filled. 



Well then Folks..!!! I know you have already figured out the moral behind this article. Keep an eye on percentages. Always look for specific details, just the percentage without time scale is just speculation. Doubling means not only increase in production or extraction, but also depletion. And at the rate in which our population is rising, we are already in the last minutes like those of the bacteria. Looking at the timeline diagram again I wonder whether we are in the last minutes or last seconds...!!!



Keep thinking until I get back to you, hopefully, on something more interesting.




NOTE:

The “easy to understand”, “ I hope you understood” are all psychological impact statements that I have experimented with you. These statements are supposedly used to ease your head and help you convince yourself that the data is easy to comprehend. I hope it worked.