Earlier quoted context omitted.
Can someone just spoil it please? I hate having to waste my time in order to glean insights. Pareto.
She teaches a class at Stanford and offers each team $5 of 'funding' in an envelope. She tells them that once they open the envelope, they have 2 hours to make as much money as they can. She cites three teams' approaches: 1) First team opens a free stand that offers to check peoples bike tire pressure for free, then charges $1 to inflate if necessary. This team changes midstream to accepting donations instead of char…
1. Used a device to measure the tire pressure and materials to build the booth and signs. Did they cost less than $5? Maybe. Did it take less than 2 hours to create the booth, the signs, and perform the services? Unlikely.
2. Well done on finding something you can acquire for free and then sell. However: did they make the reservations at 6pm and then sell them before 8pm? If not, the process of making the money took more than the 2 hours allotted.
3. You had two hours. Instead, you spent 2 hours talking to an advertising company and then a week later you sold 3 minutes of your time. Total time used to make $650: a week. In the real world you can't just discount lead time and idle time; that's a mistake made by a lot of starving contractors.
The point of the puzzle is to work inside the constraints. "Thinking outside the box" is a great skill and all, but basically all these teams are doing is finding creative ways of breaking the rules. It means the puzzle isn't "make the most money in 2 hours with $5", it means the puzzle is "find out how far you can stretch these rules without being disqualified". Points for creativity, sure, but that wasn't the problem.