Estimation question

Estimate the number of groups on Facebook

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What this question tests

Tests structured estimation using known user-base scale and reasonable group-membership assumptions.

How to approach it

  1. State the goal: estimate the total number of active Facebook Groups worldwide.
  2. Start from a known anchor: assume roughly 2 billion monthly active Facebook users.
  3. Estimate group participation rate: assume 50% of users are in at least one active group.
  4. Estimate average groups joined per participating user: assume an average of 3 groups per participating user.
  5. Estimate average group size: assume a typical group averages 500 members, spanning small local groups and larger communities.
  6. Compute: 1 billion participating users times 3 memberships divided by 500 average size, roughly 6 million groups, then sanity-check the order of magnitude.

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