Estimation: Clarify, Approach and Validate

When I find alternative approaches to answer product case questions, I share them. While I have my preferred methodologies, I am always willing to share other approaches, in the event they help my clients.

In this article, Sri Gari (an ex-Googler) shares his approach to estimation questions. He even includes a video.

The Methodology

  1. Clarify. Make sure you understand the core components of the question

  2. Approach. Mathematical approaches to the problem

  3. Validate. Sanity Check your answer.

Mathematical Approach

  • Mathematical formula: Equation to be used for computing the answer.

  • Breakdown: Break into multiple variables and compute them separately.

  • Substitution: Plug in numbers into the formula.

  • Calculate: Do the math to compute the final answer.

Estimation Question Types

  • Sizing. Think market size or amount of storage needed.

  • Volume. Number of X in Y. Think number of restaurants in a city.

Examples Provided

  • What is the market size of the refrigeration industry?

  • How many kayaks do you need for your startup in Seattle?

Tips & Tricks

This includes many of the same tips & tricks I share in my methodology as well.

  • More than one solution.

  • Round numbers.

  • Keep track of units.

  • Use symbols.

  • Double check: Always sanity check

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Exercise: Mobile Apps Metrics

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Estimation: Tables to the Rescue