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Chapter 3 · Technology·v1.0.0·Updated 7/16/2026·~13 min

What's changed: Initial version

3.1Fundamental Theory

Key points

Learn how computers represent numbers with binary and base conversion, combine true/false values with logical operations (AND, OR, NOT, XOR), diagram relationships between ranges with sets and Venn diagrams, capture trends in data with basic probability and statistics (correlation, regression, the normal distribution), the units of information bit and byte, character encoding, and the basics of AI such as machine learning and neural networks.

The gateway to the Technology field is "Fundamental Theory." Internally, a computer represents all data using only 0s and 1s—binary—and understanding this is the foundation for grasping hardware and programming. This section also covers logical operations at the heart of conditional judgment, basic probability and statistics for spotting trends in data, and the ideas behind machine learning that power AI.

3.1.1Binary, base conversion, and logical operations

  • Binary represents numbers using only 0 and 1. Decimal "5" is "101" in binary (4+0+1). Base conversion converts numbers between decimal, binary, and hexadecimal. Four binary digits correspond to exactly one hexadecimal digit, which is why hexadecimal is often used to represent internal computer data.
  • Logical operations combine true (1) and false (0) values to produce a result. AND is true only when both inputs are true (logical product). OR is true when at least one input is true (logical sum). NOT inverts true/false. XOR is true only when exactly one input is true (exclusive OR; false when both are true or both are false).

3.1.2Sets, statistics, information units, character encoding, and AI basics

  • A set is a collection of things. A Venn diagram visualizes relationships between sets (intersection, union, difference) using overlapping circles. "A and B" corresponds to the overlapping area; "A or B" corresponds to the combined area of both circles.
  • Correlation measures the strength of the relationship between two sets of data (e.g., as one increases, the other tends to increase or decrease). Correlation does not necessarily imply causation. Regression fits an equation (such as a line) to data trends in order to make predictions. The normal distribution is a symmetric, bell-shaped distribution centered on the mean, commonly seen in natural phenomena and measurements.
  • A bit is the smallest unit of information (a single 0 or 1). A byte groups 8 bits together (representing 256 possible values). Character encoding maps characters to bit patterns (e.g., ASCII, Unicode); opening the same file with the wrong character encoding causes garbled text (mojibake).
  • Machine learning is a technique in which a computer learns rules and patterns from large amounts of data on its own (the core of AI). A neural network is a computational model inspired by the connections of neurons in the human brain, forming the basis for machine learning—especially deep learning.
Exam point

The staples: basic base conversion (decimal 5 = binary 101); AND = both true, OR = at least one true, XOR = exactly one true; correlation is not the same as causation; 1 byte = 8 bits; mismatched character encodings cause garbled text. Questions asking you to read set relationships (intersection, union) from a Venn diagram, or to give a one-line description of machine learning or neural networks, are also classic.

Consider a company survey to see how these fundamental-theory elements connect. Drawing a Venn diagram of respondents who "know product A" and those who "purchased product A," the overlapping area represents people who both know and purchased it—corresponding to the AND condition (both true) in logical operations. Conversely, "know OR purchased" corresponds to the combined area of both circles, the OR condition. Internally, the survey system might store each answer as a single bit of binary (1 for "yes," 0 for "no"), and eight such answers together make up 1 byte. When saving free-text responses, the character encoding must be kept consistent so Japanese text displays correctly—mismatched encodings cause garbled text when opened in another system. When analyzing results, even if a correlation appears between "number of ad exposures" and "purchase rate," that alone does not prove "the ad caused the purchases" (a third factor, such as season, could be influencing both). To express the trend as an equation and forecast future purchase rates, you would use regression analysis, and when data like respondents' ages clusters symmetrically around the mean, it may be treated as approximating a normal distribution. In recent years, AI is increasingly used to auto-classify free-text survey answers—behind the scenes, this relies on machine learning that learns patterns from large volumes of text (including deep learning, which uses neural networks modeled on the human brain's neural connections).

OperationWhen it is trueExample (A, B)
ANDA and B are both true1,1->1 / 1,0->0
ORAt least one of A, B is true1,0->1 / 0,0->0
XORExactly one of A, B is true1,0->1 / 1,1->0
Warning

Trap: "If two sets of data are correlated, one must cause the other" is wrong—correlation only shows a tendency to move together; it does not guarantee causation. Also, "XOR is true when both inputs are true" is wrong—XOR is true only when exactly one input is true; this is easy to confuse with OR (logical sum), where both being true does count. Watch out too for the mistaken belief that "1 byte = 10 bits" (it is actually 1 byte = 8 bits).

Basic theory: binary, logic, statistics, AI.
Foundations: numbers and logic

3.1.3Section summary

  • Binary is how computers represent numbers. AND = both true; OR = at least one true; XOR = exactly one true
  • Venn diagrams visualize set relationships. Correlation is not causation. Regression predicts trends; the normal distribution is bell-shaped
  • 1 byte = 8 bits. Mismatched character encoding causes garbled text. Machine learning and neural networks underlie AI

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Quick check

(just a quick review)

Q1. Which logical operation is true when exactly one of two inputs is true (1), and false when both are true or both are false?

Q2. Ice cream sales and the number of water accidents show a strong correlation, but this is because a separate factor—temperature—affects both. What does this situation best illustrate?

Q3. Opening a file in a text editor shows the Japanese text as a meaningless string of symbols (garbled text). What is the most likely cause?

Check your understandingPractice questions for Chapter 3: Technology