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Some market-sizing assumptions are pretty uncertain, so a single number can feel fake-precise. Is it acceptable to give a range, or do interviewers usually expect one final estimate?
For some market-sizing questions I can see both a customer-demand approach and a supply/capacity approach. How do I decide which one to use in the interview?
Mayank G.CoachChoose the approach that uses the most reliable assumptions and connects most directly to the market you are sizing.
I understand that I should sanity-check the final market size, but sometimes I have no idea what the real market should be. How do I test whether the answer is reasonable without an external benchmark?
Mayank G.CoachSanity-check the components rather than relying on one remembered market number. Ask whether the implied behavior, frequency, capacity or spend makes sense at the customer level.
Sometimes I happen to know an actual market statistic from school or work. Should I use that number, or is it better to build an estimate from assumptions so the interviewer can see my reasoning?
Mayank G.CoachYou can use a real-world number if you are confident it is accurate and relevant, but do not let outside knowledge replace the reasoning the interviewer wants to see.