Case Interview Example – Estimation Question and Answer
I was asked the following management consulting estimation question by a McKinsey interviewer many years ago:
“Estimate how long it would take to move or relocate an average size mountain 10 miles using an average size truck”
Below you will see my answer to this estimation question and the process and rational I use to answer this specific question can be used as a template to practice answering other estimation questions as you prepare for case interviews.
The first thing to realize in an estimation question is that an acceptable answer MUST mention a specific number.
This question was how much time it takes to move an average mountain 1 mile (or something along those lines).
If the answer does not include a specific unit of time like X hours, Y days, Z years, then the answer is not acceptable.
By the way, I use the word “acceptable answer” instead of “correct answer” very deliberately. The interviewer’s evaluation in this type of question is in assessing the approach you took, not necessarily the specific answer you gave.
The next thing to the answer must include is that explicit assumptions must be made.
It is not possible to answer this question without making some assumptions. They key is to EXPLAIN to the interview that you are going to make some assumptions. Once you do and once you make a specific assumption, explain your rationale behind that assumption.
For example, when I was given this question. I knew that I needed to estimate the cubic volume of the mountain. And since the mountain loosely resembles a cone, I knew there was a geometric formula to calculate the volume of a cone–except I did not recall the specific formula off the top off my head.
So my interviewer suggested that I estimate the formula of a cone, which in turn I would use to estimate the volume of an average size mountain, which would then be part of a calculation to estimate the average time it would take to re-locate it.
Notice the estimate that is nested within the estimate here. This is very common. Most important thing is to not get mixed up and confused by your own work.
I find it is useful to just write out the formula that will produce the estimate FIRST, THEN go about making reasonable assumptions.
For the move the mountain case, the formula I wrote up on the white board during my interview was:
volume of mountain / volume of a truck * time per truck trip = total time to move a mountain
I would literally write that on the board. That is the amount of time it would take 1 truck to move an average size mountain 10 miles (the 1 truck is an assumption as well)
Then I went about estimating each of those 3 factors.
Assume the average size mountain is 1 mile tall, 1 mile wide, and the shape of a cone. That’s approximately 5,000 ft in height and base.
I forge the formula to calculate the volume of a cone, but if I eye ball it, it is probably a little more volume than half of a cube of similar size height and base.
The volume of a cube that’s 5,000 ft tall, 5,000 ft wide, and 5,000 ft deep is 125,000,000,000 cubic ft.
Since I’m trying to estimate a CONE, and not a CUBE, I’d then take 125,000,000,000 x 50% (my approximate guess as to how much smaller a cone is vs a cube of approximately the same height, and width and length at the base.
With some slight rounding, that gets us 60,000,000,000.
Then underneath my original formula, I would write the following:
60,000,000,000 cubic ft / volume of a truck * time per truck trip = total time to move mountain
Next, I would move on to estimate the volume of a truck.
The carrying capacity of a cargo truck is the width x length x heightof the cargo container.
I said, well I know those big trucks are a little wider than my car, but not by much since they still must be able to fit into a lane on the freeway. My car sits 3 people across, assuming 2 ft in shoulder width per person, that’s 6 ft of interior space. Let’s add on a little more and assume those big trucks are around 8 ft in width.
I know they are about double the length of most passenger sedans. And lets see if I were to lie down in the driver’s seat to take a nap, I cover most of the interior cabin space. And the hood and trunk of the car combined are about the same length as the interior cabin. I’m a little under 6ft tall, so that makes my car around 12 ft long. If I double that, I get the length of one of those trucks to be 24 ft long. I subtract out say 4 ft for the driver compartment, and that leaves me about 20 ft in length for the cargo area.
Last time I looked, I saw a worker standing in the back of one of the cargo areas, and the cargo area was taller than the person. I figure the cargo container is about 8 ft tall. And since most freeway bridges have signs that say “height 13 ft” and I know those trucks can go under those bridges, assuming an 8ft cargo section and a 4ft for the tires and chassis under the cargo area, that gives me 12 ft…which does seem to triangulate with the height of those underpasses. So I’ll say the cargo section is approximately 8 ft tall.
The volume of the cargo area of an earth moving truck is:
8 ft wide x 20 ft long x 8 ft tall = 1,280 cubic feet
For sake of simplicity, I’m going to round that down to 1,250 cubic feet and plug this number back into my original formula which now reads as follows:
60,000,000,000 cubic foot mountain / 1,250 cubic foot truck capacity * time for truck trip = total time to move a mountain
The only factor missing in our estimate is figuring out the round-trip time for a trip to move 10 miles, drop its load, and return the 10 miles. Let’s figure out the travel time first. Assume the truck travels on the freeway at 60 miles per hour.
For it to travel 10 miles, it does so in 1/6 and hour or 10 minutes. The drive time is 10 minutes to the new location, and 10 minutes returning to the old mountain for a total of 20 minutes. Assume that the off-loading process has been designed to be pretty quick. The load is just “dropped” and then repositioned while the truck is on its return trip (as opposed to being scooped out of the truck, one scoop at time which seems more time consuming).
That means each round trip takes 30 minutes or 0.5 hours.
Let’s go back to our formula again and update it.
60,000,000,000 cubic ft mountain / 1,250 cubic foot track capacity * 0.5 hours per truck trip = total time to move a mountain
Let me do the math now. For the first 2 components of the formula, that works out to about 50,000,000 (50 million truck loads).
50 million truck loads x 0.5 hours, thats 25 million hours to move a mountain.
If we assume a typical day has 25 hours (to make our math a little simpler), that’s 1 million days to move the mountain using only 1 truck. That works out to a bit under 3,000 years
That is the logic I just presented is a pretty good one that would most likely pass most estimation question interviews.
You will notice that for every little component I explain WHY I felt that was a reasonable assumption.
There is a big difference between making a wild assumption vs. a reasonable one. Your goal is to make as reasonable assumption as you can come up with. When you make such an assumption, it is very important you explain WHY you made the assumption you did.
The math is not that complicated (it’s math we all learned before high school) BUT communicating what you are doing is just as important.
It is also important that you do not make a math mistake. I wrote out this example quickly and hopefully I did not make a math mistake.
If I did make a math mistake, I would full expect to get rejected even if I got the logic and assumptions largely right.
That’s just the way it works. Practice your mental math. You DO use it a lot not just in interviews but with clients as well.
504 thoughts on “Estimation Question”
lets assume that average mountain has a dimensions of 200 m * 200 m * 1000 m*. Truck can handle 5 m* 2m* 2m. Time to load truck on average might take 1h, for simplicity. and to move to 10 miles 0.5 h. So 400 000 m3/ 20 m3 = 20 000 times to load truck. So 20 000 times * 1h is 20 000 hours spend to load 1truck. and 20 000 * 0.5 = 10 000 hours to transport. 30 000 hours to move mountain to 10 miles. Around 1 000 days, or 3 years
800 hours
1,000 hours
I know absolutely nothing about the size of mountains, but here is my logic:
The average construction truck size is about 7ft by 8ft and 6ft in depth, so it has a capability of carrying 336 sq ft. For these purposes I will round it to 350sq ft (assume some overflow).
The mountain is much harder to estimate, but they are fairly tall formations for their relative width, so it must be at least twice as tall as it is wide. The mountain I will move will be 4,000ft x 10,000ft for a total of 40 million sq ft.
The actual moving process requires several assumptions, including the labor to load and unload the mountain, potential truck break-downs, and whether this truck is working at night and holidays. For the purposes of this question, these are my assumptions:
2 persons loading/unloading truck
16 hours/day (2 worker shifts)
300 days/year (which will accommodate for truck maintenance as well as Sundays and big holidays)
If the truck moves quite fast (60mph) it will take 20 minutes round trip. However, the loading and unloading time will take quite a bit of time as well. The use of a crane will speed this process up, so that if done efficiently could be done in an average of 15 minutes at each location (unloading is a faster process than loading). This means that a round trip will take 50 minutes. Or, 19 trips a day. 5700 trips a year. This is 1,995,000 a year, or rounded up, 2 million sq ft a year.
It will take 20 years to move a 40mil sq ft mountain.
1,000,000
4 days, 8 hours
1. Volume of an average mountain
2000m high
1000m square base
Volume = 2000 x 1000 x 1000 = 2bn / 3 = c.700 million cubic metres
2. Volume of an average sized truck ‘trailer’
8m x 2m x 2m = 32 m3 ; say 30 cubic metres
3. Number of truckloads of mountain that need to be moved
= Moutain volume / tuck volume
700,000,000 / 30 = c.23 million visits
4. How long will each visit take?
4 parts to each visit:
a) load the truck with a JCB or similar
(Assume someone else is breaking up the mountain while the driver is driving back and forth) = 10 minutes
b) Drive 11 miles (1 for the mountain – 2km = c. 1 mile 10 for the trip) – say 30 mph = 22 minutes
c) Dump the contents of the truck at the new site = 3 minutes (assume tipper truck)
d) Drive back to original mountain = 22 mins (assume lighter truck does not drive appreciably faster)
Total time for 1 visit = 57 mins, say 1 hour
5. Total time to move the mountain = time for 1 visit x number of necessary visits
1 hour x 23 million visits = 23 million hours
Round up to 24 million hours and you have 1 million days for one person working at 24 hours a day (plus whoever is breaking up the mountain)
Working at 8 hours a day you have 3 million days
Working 8 hours a day for 300 days a year you have 10,000 years
On this timescale, how much of a factor will erosion be…? Plus mortality…
Estimate how long it would take to move or relocate an average size mountain 10 miles using an average size truck.
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Facts/Assumptions
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Mass of mountain: 100 b kg
Capacity of truck: 10 k kg
Distance: 10 mi
Loading time: 1 hr
Unloading time: 1 hr
Transit speed: 20 mph
Workday length = 9 hours
# Days worked per year = 333 (workers get holidays and some Sundays off)
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Calculations
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Transit time:
Distance / speed
10 mi / 20 mph = 1/2 hr
Time per cycle:
Loading Transit there Unloading Transit back
1 hr 1/2 hr 1 hr 1/2 hr = 3 hr
Cycles per day:
Day length / cycle time
9 hrs / 3 hrs = 3 cycles per day
Mountain moved per day:
Capacity of truck * cycles per day
10 k kg * 3 = 30 k kg
Number of days needed:
Mass of mountain / amount moved per day
10 b kg / 30 k kg = 1,000,000/3 = 333,333 days
Number of years needed:
333,333 days / 333 days ~ 1,000 years
Let us assume that the mountain moves at 1 mile per hour when the truck is at full throttle, then it would take 10 hours to reach 10 miles and so on.
1- Average size of a mountain
2-Average capacity of a truck
3- Round trip duration
4- Load / Off-Load duration
5- Number of hours worked / day
6- Maintenance duration of the truck
7- Gasoline fulfillment
1- Avg. Size of a Mountain
-Assuming the mountain is Pyramid shaped
w= 500 Mt
l=500 Mt
h=1000 Mt
Total Volume= (500*500*1000)/3–> ~100 Mn cubic meter
2- Avg Capacity of a Truck
l= 10 mt
w= 3 Mt
h=2 Mt
Capacity = 60 but taken as 50 cubic meter
3- Two different trip times
– Loaded trip speed = 30 Miles /hr –> It takes 20 Min.
– Empty trip speed = 60 Miles /hr –> It takes 10 Min.
Total 30 Min.
4- Loading= 25 minutes, Offloading: 5 minutes
Total: 30 Minutes
Total Operation Time: 1 hour for each time
5- Assuming truck is operating 15 hours / day
6- Assuming using the same truck (without having it getting scrapped).Maintenance will be required in every 3000 hours worked.
If it operates 15 Hours / day this makes ~2 maintenance per year. In each maintenance if we assume the truck will be out of service for 2.5 days, it will be operational for 360 Days / year
7- Gasoline fulfilling is assumed to be handled during out of service hours. It will be disregarded
The truck will make 15 times loading and offloading / day
15 times * 360 = 5400 times / year
Each time it can carry 50 cubic meter. 100 Mn cubic meter requires 2 Mn times of loading and offloading operation
2Mn over 5400 times / year = ~370 years.