Estimation question

Estimate the number of restaurants in Mumbai.

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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

  1. Confirm scope: all restaurants, including small eateries and street food stalls, or only formal sit-down restaurants.
  2. Start from Mumbai's population, roughly 12 to 13 million people in the city proper.
  3. Estimate households or people per restaurant based on dining density in a dense Indian metro, since eating out is common.
  4. State an assumption, such as roughly 1 restaurant per 400 to 600 people given how common small eateries are.
  5. Divide population by that ratio to get a restaurant count, and sanity check against known dense-city restaurant density elsewhere.
  6. Present the result as a range and flag which assumption, dining-out frequency or restaurant density, most affects the answer.

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