Estimation question
Estimate the number of restaurants in Mumbai.
- Estimation
- Easy
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What this question tests
Whether you can build a clean bottom-up estimate for an unfamiliar city using stated, reasonable assumptions.
How to approach it
- Confirm scope: all restaurants, including small eateries and street food stalls, or only formal sit-down restaurants.
- Start from Mumbai's population, roughly 12 to 13 million people in the city proper.
- Estimate households or people per restaurant based on dining density in a dense Indian metro, since eating out is common.
- State an assumption, such as roughly 1 restaurant per 400 to 600 people given how common small eateries are.
- Divide population by that ratio to get a restaurant count, and sanity check against known dense-city restaurant density elsewhere.
- Present the result as a range and flag which assumption, dining-out frequency or restaurant density, most affects the answer.
What a strong answer includes
- Uses a density-based bottom-up method, population divided by people per restaurant, rather than guessing a round number.
- States the restaurant density assumption explicitly and explains why it fits a dense Indian metro context.
- Sanity checks the result against a comparable known dense city rather than leaving it unchecked.
- Presents a range instead of false precision, and names the most sensitive assumption.
Common mistakes
- Giving a single guessed number with no visible method or stated assumptions.
- Ignoring that a dense Indian metro likely has a much higher restaurant-to-population ratio than a typical US city.
Likely follow-up questions
- How would you adjust this if it only asked for licensed, sit-down restaurants?
- Which assumption would you want real data on first to sharpen the estimate?
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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