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”
Mountain roughly as a pyramid. of 1000m per 1000m per 1000m so 10^9 m cube of volume. The runs at 60 miles so he does 10 minutes for 10 miles. 20 Miles for Return. 10 min to charge 10 min to uncharge. 40 min. Capacity of a truck 20 m cube. so 10^9 / 20 = 5 * 10^8 travels per 40 min =2 per 10^10 minutes
The formula will be used is the following:
Estimated time (working days) = {(Transportation time/load Loading time/load)*no. of loadings}/no.of working hours/day
> Transportation time/load = Miles (per load)/av. speed (per load)
Assumptions: av.speed = 40 miles/h
=> Transportation time/load = 20 miles /40 miles/h = 0.5 h
> Loading time/load = Load in Load out
Assumptions: 3 workers
Av. time to load 1 cube m/worker = 0,5 h
Av. size truck volume = av. width* av. length* av. height = 1 m*3 m*1 m = 3 cube m
=> Loading time/load = 0,5 h * 2 = 1h
> No. of loadings = Average size mountain volume / Average size truck volume
Av. size mountain volume = Pyramid volume = av. length^2*av. height/3 = 100 m^2*1.500 m/3 = 15.000.000 cube meters/3 = 5.000.000 cube meters
Av. size truck volume = av. width* av. length* av. height = 1 m*3 m*1 m= 3 cube m
=> N0.of loadings = 5.000.000 cube m/3 cube m= 1.666.666,6
> No.of working hours/working day = 8 h/working day
=> Estimated time = {(0,5 h 1h)*1.666.666,6}/8h/working day= 1.5h*1.666.666,6/8 = 312.499,9 working days = 312.500 working days
100 years
I ‘ll try to work out the following estimates which I believe are necessary to answer the question :
1. Size of our average montain in cubic meters
2. Size of our average’s truck Payload in cubic meters
3. Time per trips (load, way out, off load, way back)
1. Mountain heights range up to several kms but the vast majority would be much, lower, typically under 1km.
Let’s assume our average mountain is a pyramid 1km high, with 500m square as a basis. The volume of this pyramid can be estimated that of a cube of 500m, that is 500^3 = 1,25M cubic meters (light overestimate).
2. A truck with a payload of 3*5*2 = 30 cubic meter being used
3. Each trip includes :
– loading : 25 minutes (assuming we are decently equiped to load)
– trip is 10 miles each way at the reasonable average speed of 40 miles an hour, that is 30 min (certainly slower on the way out than empty on the way back, but consider average)
– off-loading would be quicker : 5 minutes.
This addsup to a total of 1 hour per turnaround.
For the simplifying further calcualtion, we will assume our mountain is 120 M cubic meter rather than 125, which is not irrelevent given our mountain volume estimate was over the actual volume.
Caluclation goes as follow :
We would need 120 M / 30 = 4 M trips to move the mountain 10 miles away.
Spending 1hour per trip, that is 4 M hours, or a little above 80 000 days.
Thank you for the question.
Assuming the average mountain is 10 times the average truck bigger, and truck is moving at 60 miles per hour,
it will take 100 minutes for the truck to move the mountain
Answer = # trips × amount of time per trip
(1) # trips = (1.1) mountain’s total volume ÷ truck’s volume capacity
(2) amount of time per trip = time to charge time to discharge (2.1) time to transport
(1.1) = height × pi × r2 (suppose it is a cone format)
(2.1.) = average speed ÷ distance
I went about solving the case with the following logic…
The first step I took was to identify the key activities that would consume time and then, segment those activities respectively. The three key activities I noted were…
1. Travel time between location A (original location) to location B (new location)
2. Time to “on-load” mountain
3. Time to “off-load” mountain
Thus, our answer is going to be contingent upon the following equation…
Total time = travel time “on-load” time “off-load” time
Assumptions I made were…
1. Only the trunk of the truck was a viable source of transport. I also assumed that the soil must be filled only within the rectangular cube space of the trunk (since soil might be flying out of the truck if filled like a cone, and hence, the failure to transport the mountain)
2. Mountain most represents a cone, and if fitted within a cube, the cone would fill approximately 50% of the volume.
3. Truck is travelling at a relatively “safe speed” at 40mph
Analyzing the Case…
1. To figure out the total travel time on the road, I had to first calculate the volume of both mountain as well as the truck. To simplify my life, I assumed that the length, width, and height of the trunk space was 5 by 5 by 4 feet, which gives us a cubic ft volume of 100 ft cubed. Now, I turned my attention to the “conish” mountain. Again, to simplify our lives, I made some assumptions that the mountain’s length, width, and height was 2000 by 1000 by 5000 ft, which gives us a cubic ft volume of 10,000,000,000 ft cubed; however, I have previously made the assumption that cone would fill 50% of the cube. Thus, the actual volume would be 5,000,000,000 ft cubed. Dividing the mountain’s volume by truck’s volume gives us 50,000,000 units. Now, at a speed of 40mph, the truck can travel from location A to location B in 30 minutes, or .5 hours, or a round trip in 1 hour. We now multiply 50,000,000 units by 1 hour, which gives us a total travel time of 50,000,000 hours.
2. The next branch to analyze is the time to “on-load” the trunk of the truck. However, I recognized that the time to “on-load” the trunk would be different at different intervals. To explain myself, digging up dirt from the top of the mountain and walking to the bottom would take longer than the last scoop of the mountain, next to the truck. Thus, we must create a upper bound and lower bound and take the average to find the average “on-load” time. The bounds I made were 100 minutes vs 20 minutes, hence an average of 1 hour [(100 200/2]. Thus, it takes on average, 1 hour to “on-load” the truck. Since I have already analyzed the number of times it takes to fill the truck (50,000,000), we multiply 1 hour by 50,000,000 = 50,000,000 hours, which is the total “on-load” time.
3. The last branch to analyze is the “off-load” time. However, because the activities of “on-load” and “off-load” are identical in nature, we can assume that the total “off-load” time is 50,000,000 hours as well.
Final Answer…
Total Time = 50,000,ooo hours 50,000,000 hours 50,000,000 hours
Total Time = 150,000,000 hours
To further break down and simplify into a more comprehensible time frame…
24 hours/day
7 days a week
Total hours in week = 24*7
To simplify math… 20 hours * 10 days = 200 hours a week
4 weeks a month
approximate total hours a month = 200 * 4 = 800 hours
total hours in 5 year = 800 hours * (12 months * 5 years) = 48,000 hours
approximate total hours in 5 years = 50,000 hours
150,000,000 / 50,000 = 3,000 (in intervals of 5 years)
3,000*5 = 15,000 years
(This answer is approximately -20% from non-rounded hours based on these same numbers)
Lets assume average size mountain weights around 20 000 tonnes and Average truck can take 2 tonnes at once. Therefore truck needs to do 10 000 trips with the ‘mountain’ and 10 000 trips back- therefore 20 000 trips needs to be done.
Truck going with speed of 60 miles/h can do 3 full (there and back) 20 miles trips. If we assume one loading takes a 20 minutes – its 2 trips per hour.
Therefore for 20 000 trips needed to move the mountain – truck needs 10 000 hours. Assuming truck can work 10h/ day its 1 000 days.
27 Days 6 Hours 20 minutes.