Estimation Questions

Question

Hi,

If we make a good structure in the estimation cases, very solid & meaningful structure, however the assumptions we take, say too high or too low, so that we miss the estimation with one zero less or one zero more, quite a significant difference.

Does this mean that the end of the case (&interview) or they test your thinking structure so the actual number doesn't matter that much?

Thanks

Answer 1

Hi,

it really depends. If your assumptions are a little of on each step of the estimations you can get quickly to 5-10X the true market size. I think you would only fail if you made completely unlogical/ unrealistic assumptions and would not revise them when the interviewer asks. E.g. when estimating the size of the app market in a developing country, assuming that 50% of people have an iPhone.

Tough to say without a concrete example. But I always recommend to learn some of the key figures for your market e.g. number of inhabitants, number of households, average income, age distribution, etc. to be on the safe side.

Best,

John

Answer 2

Hi,

In general, they mostly care about your approach and how you justify your assumptions and the actual number do not matter. Moreover, if the assumptions are unrealistic - the interviewer will mention that. So don't worry

Best

Answer 3

AI and ChatGPT are definitely game-changers for consulting prep! They’re great for structuring case frameworks, gener... (read entire answer)

AI and ChatGPT are definitely game-changers for consulting prep! They’re great for structuring case frameworks, generating potential interview questions, and even simulating cas... (read entire answer)