Estimation question

A company has launched a new drug that eliminates the need for sleep. How would you price this drug?

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Pricing reasoning based on value created for the customer rather than cost plus pricing.

Estimate the value created, eliminating eight hours of sleep gives roughly a 50 percent increase in usable waking hours a day.
Estimate what an hour of a target customer's time is worth, for example $30 to $50 an hour for a professional segment.
Multiply extra hours by value per hour to estimate daily value created, then decide what share of that value the price should capture.
Consider segmentation, since willingness to pay differs for high earners versus general consumers, and choose an initial target segment.
Propose a price point and format, priced to capture a modest fraction of the value created, while noting health and regulatory cost.

Anchors price to value created, for example eight extra hours times $40 an hour equals $320 a day in potential value, then prices at a small fraction of that, say $20 to $40 a day, to leave value on the table for adoption.
Segments by customer type, launching with premium professional users before considering mass market pricing.
Flags the real constraint beyond pricing math, this is a drug requiring safety and regulatory approval, which affects both cost and achievable price.

Pricing based on manufacturing cost alone, ignoring the value created.
Ignoring health, safety, and regulatory realities of a sleep elimination drug entirely.
No segmentation, treating all potential buyers as having the same willingness to pay.

Chapters of the AI PM course that teach what this question tests.