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.
Get Active in Our Amazing Community of Over 452,000 Peers!
Schedule mock interviews on the Meeting Board, join the latest community discussions in our Consulting Q&A and find like-minded Case Partners to connect and practice with!
Question about the growth rate
Overview of answers
Upvotes
Best answer
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
(edited)
Was this answer helpful?
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!
Was this answer helpful?
Great to see that you already received a clarification for the question.
Sharing here a guide that you might find useful with the most common formulas and terms that show up in interviews:
Best,
Cristian
Was this answer helpful?
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.
Was this answer helpful?
Related Cases
Expert case by Hagen
Style:
Sprinker is a mid-sized, US-based publishing agency that develops, produces, and sells educational materials. It has come to their attention that some private schools are considering changing their first-grade textbooks, for which they would need a publishing agency.Sprinker is interested in partici
...
Sprinker is a mid-sized, US-based publishing agency that develops, produces, and sells educational materials. It has come to their attention that some private schools are considering changin
...
(Open whole case)
18.0k
Times solved
Beginner
Difficulty
CoachingPlus Expert
Premium + Coaching Expert
Content Creator
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years
489
Meetings
15,787
Q&A Upvotes
88
Awards
415 Reviews
