Estimation question

Estimate the number of vacuum sold in the US.

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What this question tests

Tests structured Fermi estimation using household counts and replacement cycles for a durable goods product.

How to approach it

  1. Frame the formula: number of US households times the share that buy a vacuum in a given year, driven mostly by replacement, not first purchase.
  2. Assume roughly 130 million households in the US.
  3. Assume a vacuum lasts on average about 8 years before replacement, so roughly 1 in 8 households buys a replacement vacuum in a given year, about 16 million.
  4. Add new-household formation and gift or secondary-vacuum purchases, roughly another 2 to 4 million units, for a combined estimate around 18 to 20 million.
  5. State a final estimate of roughly 18 to 20 million vacuums sold per year in the US, clearly marked as assumption-based.

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