Estimation question

Estimate the number of incidents that could be reported by users of Waymo in the SF Bay area.

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What this question tests

Estimation with a clear funnel and reasonable assumptions for a niche, real world autonomous vehicle scenario.

How to approach it

  1. Define what counts as an incident: anything from a minor near-miss report to an actual collision or safety disengagement.
  2. Break the estimate into a funnel: number of Waymo vehicles operating in the SF Bay Area, times average miles driven per vehicle per day, times an assumed incident rate per mile.
  3. State assumptions explicitly, for example a fleet size in the hundreds of vehicles, each driving roughly 100 to 150 miles a day.
  4. Assume an incident rate based on publicly discussed autonomous vehicle safety data, for example a rough range around 1 reportable incident per 10,000 to 100,000 miles driven.
  5. Calculate the estimate and sanity check it against the order of magnitude of publicly reported autonomous vehicle disengagement or incident reports.
  6. Segment by incident severity, since most will be minor and only a small fraction will be significant collisions.

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