File Name: guess estimation questions and answers .zip
Size: 27912Kb
Published: 12.05.2021
To browse Academia. Skip to main content. By using our site, you agree to our collection of information through the use of cookies. To learn more, view our Privacy Policy. Log In Sign Up.
This kind of case interview question may appear challenging and even irritating at first, but once you know which steps to take, they will become much more enjoyable. Successfully answering these questions relies on a combination of mental math , logical thinking, problem-solving skills, and background knowledge.
Market-sizing questions ask the candidate to estimate the market size e. Good command of math, logic and problem-solving skills is needed, along with background business knowledge. In consulting case interviews and other job interviews as well , the guesstimate questions ask you to do just that! In fact, they are among the most popular case interview questions. To learn about Case Interview Questions besides market-sizing and guesstimates, check out this guide:.
Watch the video first, then try solve the exercise below it before continuing to the answer:. In the given example, at least four points need to be clarified. For the sake of demonstration, suppose we receive these clarifications:. Ask for timeout, then break the problem down into pieces small enough to estimate reasonably. This graphical break-down of the problem is called an issue tree, and it has to be MECE.
Use calculations to consolidate the pieces into a final answer. Quick mental math is essential for this step — if your math is too slow, you will bore the interviewer to death. Practice your mental math and tune it for consulting case interviews; I wrote an article on Consulting and Mental Math to help you with just that. In reality, I repeat: the only thing that matters is a structured approach.
When clarifying, limit the possibilities to only the ones favorable to you. On the other hand, open-ended questions take away your control and give it to the interviewer, making the question much less predictable. Base your estimations on facts and logic to make them more defendable.
After all, consulting is a fact-based industry , and accountability is a desirable trait. As such, the interviewer will likely question you on your estimations , so always have valid reasons to defend them. Do your brain a favor, and round the numbers for easier calculations.
Ideally, you would alternate between rounding up and rounding down, so the offsets will cancel each other out and minimize your margin of error — this is the same technique I teach for Consulting Math. Regularly check if your numbers are sound — logically, factually, and mathematically. By all means, look out for those embarrassing mistakes; do sanity checks , and do them out loud so the interviewer can see how careful you are.
Literally draw the issue trees and point to it as you speak. On a side note, you can also use tables to visualize your answers. Tables are much more compact than issue trees, thus very useful for complex problems. You can make these questions easier by building two cheat sheets — one for common segmentations, and the other for common data. These are four quick and easy templates to break down problems in market-sizing and guesstimating , the first three of which are actually used in real marketing activities.
You can list the specific common segmentations in each type e. Geographical segmentation. For example, if the smartphone example concerns the European market, I can break it down into four units — Northern, Southern, Eastern, and Western. Demographic segmentation. Common demographic factors in market-sizing and guesstimate questions are age, gender, income, family status, education.
Behavioral segmentation. If you look back at my example, you can see two behavioral segments there: smartphone users and keyboard-phone users.
Replacement and growth. However, if the market size grows significantly positive or negative within the question timeframe, you need to calculate that growth separate from replacement.
On a geographical basis, those two data types often appear on three scales :. Here are two example questions for you to practice, each with a suggested answer. Question 1: How much Earl Grey tea is drunk by British people in a typical afternoon?
Break down the problem. Solve each piece. Consolidate the pieces. Presenting the Answer — Interview Script. You know the steps, the tips and you already have your cheat sheet in mind. However, case interviews are not just about content, but also presentation!
How do you present an answer to a market-sizing and guesstimate question in a truly consulting-like way and impress your interviewer? Kick start your case interview practice with our Prospective Candidate Starter Pack Over 50 tips and tricks, a framework dictionary and an example from our premium Case Interview End-to-End Secrets Program.
Still want to learn even more advanced tips and tricks of market-sizing and guesstimate questions, or do you want to explore the secrets of consulting case interviews?
Deep-dive into the secrets of case interviews at top consulting firms, with extensive materials on business intuition, tips and techniques, as well as consulting math! Everything you need to know about case interviews, from fundamental concepts to advanced tips Want to speed up your interview prep dramatically?
By dividing case interview questions into these 8 clear-cut types, you can Although not as popular as before, brain teaser questions may still appear in your interviews. Learn how to answer them Lost your password? Do not have an account. Sign up here. What are Guesstimate Questions?
How many bottles of champagne are there in France right now? How many weddings are being performed in New York at the moment? How many liters of white paint does it take to paint the White House? What are Market-Sizing Questions?
Example market-sizing questions: How many pick-up trucks are sold in the USA each year? What is the total annual sales of the global laptop market? What is the size of the second-hand car market in Japan? How much revenue does your favorite restaurant make each month? If you open a lemonade stand, how much money can you get from it? Clarifying at the beginning serves four purposes: It gives you the necessary information to solve an otherwise-unclear problem.
It brings you and the interviewer on the same page, preventing later disagreements. It shows an ideal, organized approach to problem-solving similar to what consultants do. It buys you some time to think about the problem. What is a smartphone? What is the unit of measurement? What is the timeframe to measure the market size? At which point in time is the market size measured?
For the sake of demonstration, suppose we receive these clarifications: A smartphone is a phone exclusively using a touchscreen, i. The unit of measurement is the number of smartphones sold to end consumers. The timeframe used is annual.
The question concerns the German market size at present. Step 2: Break down the problem Ask for timeout, then break the problem down into pieces small enough to estimate reasonably.
The percentage of smartphone owners within German mobile phone owners. The average lifespan of smartphones in Germany. Step 3: Solve each piece This is where you solve each piece independently. Step 4: Consolidate the pieces Use calculations to consolidate the pieces into a final answer. My clarifying phase should have been:. A smartphone is a phone exclusively using a touchscreen, i. The unit of measurement is the number of smartphones sold to end consumers 3. The timeframe used is annual 4.
The question concerns the German market size at present So, are we on the same page on this? Tip 2: Make defendable, fact-based estimations Base your estimations on facts and logic to make them more defendable. Tip 3: Round up the numbers for easy calculations Do your brain a favor, and round the numbers for easier calculations.
Tip 4: Perform regular sanity checks Regularly check if your numbers are sound — logically, factually, and mathematically. Tip 5: Solve the problem with explicit visual aids Literally draw the issue trees and point to it as you speak. Common segmentations These are four quick and easy templates to break down problems in market-sizing and guesstimating , the first three of which are actually used in real marketing activities.
Clarify Earl Grey tea is any tea marketed as such, regardless of the ingredients.
The questions in this chapter are representative examples of Guesstimate Cases. In essence, these questions involve a short case or analysis in which you must try to estimate a value you probably had never considered estimating before. The key to these types of problems is to break them down into logical pieces, walking the interviewer through how you are approaching the problem, and then try to determine appropriate assumptions for the value of key figures in each of those pieces. Guesstimate cases are generally used as part of a first-round interview to warm a candidate up for a full Business Situation Case later in the interview process. Guesstimate cases are also used as a way to test quantitative ability, numerical thinking and judgment, and an to arrive at reasonable assumptions. With some practice, guesstimate cases are not difficult and once you get accustomed to them, they are actually quite fun, even though at first they might seem a little scary.
But, what are the pre-requisites is still unknown! Well, this can be answered later, but there are certain ways in which an employer gets to access the logical and business skills an applicant possesses. Guesstimate is defined as an estimate made without using accurate or complete information, or one arrived at by guess-work or conjecture. NOTE: Any hiring manager would prefer a wrong answer with a better approach than an accurate answer with a bad approach. Find the right proxy : The proxy is a parameter which behaves in a similar fashion as the dependent parameter. In the chair estimation problem, the population of India is a good proxy for the number of office chairs sold.
Questions like these are very common in analytics and management consulting interviews. If you wish to appear for companies of this genre, you.
Guesstimates have now become an important part of several interview processes and B-School competitions. They are also a lot of fun! The process of solving a guesstimate problem is pretty simple: Look at the possible parameters that may affect the final quantity, and estimate its numbers. Guesstimate the quantity of chocolate in all its forms used in Delhi in a day. Step 1 : The Umbrella.
If you're in a B-School and are appearing for your Summer Placement Interviews or Final Interviews, Guesstimates play an important part in any consulting or analytics interview. It gives the panellist a peek in your problem solving and thinking abilities. The focus is more on the approach than getting the answer right.
You can divide the airport area into three part, one the building waiting room, airport control room , other one is runway and some open spaces. So one runway length is 2 km and suppose there are 10 runways so 20 km. So runway is 20 km Hence open space 25 km Building 5 km Total 50 square km. How many golf balls can fit into a school bus?
Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.
This kind of case interview question may appear challenging and even irritating at first, but once you know which steps to take, they will become much more enjoyable. Successfully answering these questions relies on a combination of mental math , logical thinking, problem-solving skills, and background knowledge. Market-sizing questions ask the candidate to estimate the market size e. Good command of math, logic and problem-solving skills is needed, along with background business knowledge. In consulting case interviews and other job interviews as well , the guesstimate questions ask you to do just that! In fact, they are among the most popular case interview questions.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email. It will take less than 1 minute to register for lifetime. How many cars are there in Bangalore? Myntra Case Study Round. Assumption 1 — Population of Bangalore, 10,,
This website uses cookies to enable essential functions like the user login and sessions. We also use cookies and third-party tools to improve your surfing experience on preplounge. You can choose to activate only essential cookies or all cookies.