Estimation question
Assume you are the placement coordinator of a Tier-1 engineering college and it's the first day of placements. Inside the campus, there is a cafe. Estimate how many people have purchased coffee on that particular day.
- Café Coffee Day
- Starbucks
- Estimation
- Medium
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What this question tests
Situational estimation combining foot traffic, conversion behavior, and time-of-day patterns rather than a single guess.
How to approach it
- Clarify scope: total coffee purchases at the campus cafe across the full placement day, assuming standard operating hours of roughly 10 hours.
- Estimate total foot traffic on placement day: assume 2,000 students on campus, plus recruiters and staff, adding another 200, roughly 2,200 people total.
- Estimate what share passes near or visits the cafe: assume 40 percent visit at some point during the day given it's a high-traffic placement day, about 880 people.
- Estimate purchase conversion: assume 50 percent of cafe visitors actually buy coffee, given some just wait or buy other items, landing around 440 people.
- Adjust for repeat purchases: assume 20 percent of buyers purchase more than once during a long day, adding roughly 90 extra purchases.
- Sum to a total: roughly 530 coffee purchases for the day, stated as a rough estimate built from explicit assumptions.
What a strong answer includes
- Builds the estimate through a clear funnel, foot traffic to visit rate to purchase conversion to repeat rate, rather than a single flat guess.
- States each assumption as an explicit number, inviting the interviewer to challenge any one step.
- Accounts for repeat purchases, a detail many candidates miss on a long, high-stress placement day.
Common mistakes
- Estimating total footfall and treating it as equal to total purchases, skipping the visit and conversion funnel.
- Ignoring repeat purchases, which are common on a long day with recruiters and students needing caffeine multiple times.
Likely follow-up questions
- How would your estimate change if it rained that day?
- What data would you want to validate this estimate quickly?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 2: Data fluency: SQL, logs, and reading the truth yourself
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop