Problem 1
There are two sub-systems (1 and 2). Failure of sub-systeml will make sub-system2 35% inoperable, while failure of sub-system2 will make sub-systeml 50% inoperable
1. Matrix A can be written as:
Suppose that sub-system2 is attacked with intensity h = 90%. Using matrix equation x = Ax + c, where x is the inoperability of the sub-systems, A is the dependency matrix, and c is the intensity of attack, please match the values to the following questions
2. What is the resulting value of x1?
3. What is the resulting value of x2?
Problem 2
Apply Gorda algorithm to score and rank the risk events shown.
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Criteria
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1.1 Telephone
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1.2 Cellular
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2. Cable
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Undetectabilitv
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High
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Low
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High
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Uncontrollability
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High
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Med
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High
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Multiple Paths to Failure
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High
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Med
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High
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Irreversibility
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High
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High
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Low
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Duration of Effects
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High
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High
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High
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Cascading Effects
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Low
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High
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High
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Operating Environment
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High
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Med
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High
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Wear and Tear
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High
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Med
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High
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Hardware' Sof tw are/Human/Organizational
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High
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High
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High
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Complexity and Emergent Behaviors
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High
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High
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High
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Design Immaturity
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High
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High
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Med
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1. What is the score of "Telephone"?
2. What is the score of "Cellular"?
3. What is the score of "Cable"?
Problem 3
John Doe is a rational person whose satisfaction or preference for various amounts of money can be expressed as a function U(x) = (x/100)^2, where x is in $.
1. How much satisfaction does $20 bring to John?
If we limit the range of U(x) between 0 and 1.0, then we can use this function to represent John's utility (i.e. U(x) becomes his utility function).
2. What is the shape of his utility function?
CI Concave
m Convex
m Straight line
q None of these
3. What does this graph show about John's incremental satisfaction?
q Increases with increasing x
q Decreases with increasing x
q Does not change with k
m None of these
4. "The shape of John's utility function shows that he is willing to accept more risk than a risk-neutral person."
True
False
5. John is considering a lottery which payoff $80 forty percent of the time, and $10 sixty percent of the time. If John plays this lottery repeatedly, how much will be his long-term average satisfaction?
6. For John, what certain amount would give him satisfaction equal to this lottery? Express your answer to nearest whole $.