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Anonym A
am 15. Feb. 2024
Global
Frage zu

Question about the growth rate

Could you please clarify why we divide 1.04 instead of multiplying it when calculating the number of first-grade students in the US? I would assume that with a positive growth rate, we should multiply to obtain the number of students who will buy the new textbook in the next year.

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Hagen
Coach
bearbeitet am 15. Feb. 2024
#1 recommended coach | >95% success rate | 9+ years consulting, interviewing and coaching experience

Hi there,

Thank you very much for this question. I would be happy to share the solution to it:

  • Since we want to calculate the number of children born 7 years ago, a number in the past, we need to divide by this positive growth rate instead of multiplying by it.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen

Ian
Coach
am 15. Feb. 2024
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

Hagen is exactly right here.

This is a super rare situation and I personally have not seen this in a case. That said, it's good to know, and, most importantly, it's always good to practice how to react to a new thing mid-case…using logic and math fundamentals you could have tried to figure it out. Practice these scenarios as you are likely to get something you havenm't seen before, and therefor cannot solely rely on memorization!

am 16. Feb. 2024
#1 Rated McKinsey Coach | Top MBB Coach | Verifiable success rates
Pedro
Coach
am 29. März 2024
Bain | EY-Parthenon | Former Principal | 1.5h session | 30% discount 1st session

Because you are trying to take out the growth (to estimate a number in the past) istead of projecting growth to estimate a number in the future.

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