The guesstimate question frequently comes up in consulting interviews.
It will often be a market sizing question, which may be a standalone question or part of a larger case question.
What will you be asked to do?
The typical guesstimate question will require you to estimate a number by doing a rough “back of the envelope” calculation. You are supposed to reach a final answer by using a series of narrowing assumptions.
Your assumptions should have a sound basis and you should explain the logic behind your assumptions, however it is not important that your assumptions be 100% accurate.
What is being assessed?
The guesstimate question is quite different from the kind of interview questions that you are probably used to.
For the guesstimate question, it is better to arrive at the wrong answer with good assumptions and clear logic than to know the right answer because you read it in a text book.
[For more information on consulting interviews, please download “The HUB’s Guide to Consulting Interviews“.]