Introduction

Have you ever found yourself in a situation where you were asked to estimate a difficult or impossible-to-measure value? Whether it's in a job interview, a business meeting, or a casual conversation, being able to make quick and reliable estimates is a valuable skill. This is where guesstimates come in.

What are Guesstimates?

As defined earlier, Guesstimates are rough estimates made based on incomplete information and expert judgment. They are often used in situations where it's impossible or impractical to get an accurate measurement. For example, you may be asked to estimate how many taxi rides occur in New York City in a day. While it's possible to get an exact count, it would be time-consuming and difficult to do. A guesstimate would be to find out the number of taxis operating in the city, estimate how many rides each taxi takes per day and then multiply that number to get the total.

Guesstimates as Interview Questions

Being able to make accurate guesstimates is a valuable skill that is highly sought after in many industries. In job interviews, employers often use guesstimate questions as a way to assess a candidate's ability to think on their feet, problem-solve, and make decisions based on limited information. Additionally, in real-world situations, guesstimates are often used to make quick decisions, plan projects, and evaluate business opportunities. Being able to make reliable guesstimates can give you a competitive edge in both your personal and professional life.

Different Approach to Solving Guesstimates

When it comes to solving guesstimates, there are different approaches you can take. One popular method is to use the "Fermi estimation" approach, named after the physicist Enrico Fermi. This method involves breaking a problem down into smaller, more manageable parts and then using what you know to make educated guesses about the unknown parts.

Another approach is to use the "outside-in" method, where you start with a wide range of possibilities and then narrow it down as you gain more information. This method is often used when solving guesstimates in the business world, where you may be trying to estimate the size of a market or the potential success of a product.

Guesstimates in Action

Guesstimates can be used in a wide variety of industries and real-world situations. One example is in the field of transportation. A company might want to estimate the number of electric vehicles (EVs) on the road in a particular city in the future. While it's difficult to get an exact number, the company could use guesstimates to come up with an estimate based on factors such as the current number of EVs in the market, the rate of adoption of EVs, and government incentives for EV buyers.

Conclusion

Guesstimates are a powerful tool for making quick and reliable estimates in situations where it's impossible or impractical to get an accurate measurement. They are widely used in job interviews, business meetings, and real-world situations to make decisions, plan projects, and evaluate business opportunities. By understanding the basics of guesstimates