Table 1 is inconsistent with data?

Daily Journal
New answer on Dec 24, 2021
2 Answers
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Stanislas asked on Dec 15, 2021
Preparing for MBB interview

I understand that we are supposed to ignore table 1 and do the calculation with the simplest method as it is done in the solution.

But the table is inconsistent, it gives a potential revenue of 24,375,000 (off by a factor of 2!).

 

Calculations:

There are 500k readers reading 12*200=2400 articles per year,

250k reading 12*140=1680 articles per year and another 250k people reading 12*110=1320 articles per year. 5% of articles read are paid for at a price of 0.25. This means people spend (500k*2400+250k*1680+250k*1320)*0.05*0.25=24,375,000 per year.

I think McKinsey wouldn't give data that is inconsistent like that.

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Ian
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updated an answer on Dec 15, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Stanislas,

Good catch! I would say one out of every 2 or 3 practice cases has some type of mistake (yup, you heard me right!). In the grand scheme of things, the mistakes are not a big deal and should just glossed over (a good caser will provide the correct number or guide you “around” the mistake).

In a live case there should not be inconsistencies like this.

(edited)

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Pedro
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replied on Dec 24, 2021
30% off in March 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA

Yes, you're right. In real cases, usually you don't have those inconsistencies (as the interviewers catch them early on and make sure they are corrected).

Truth is that the majority of practice cases out there are only average. Don't be frustrated if you find other things like this, or if you can't get to the number provided by the case. Sometimes it's the case that is wrong.

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Ian

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