Estimation question
How many restaurants are there in New York?
- Estimation
- Easy
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What this question tests
Fermi estimation using population and dining-frequency assumptions, adjusted for a city's known character.
How to approach it
- State you'll estimate via NYC population and an assumed number of residents needed to support one restaurant.
- Estimate NYC population at roughly 8.5 million.
- Assume a ratio, e.g. roughly 1 restaurant per 400 to 500 residents based on typical urban density.
- Divide population by that ratio to get an estimate.
- Adjust the ratio for NYC's unusually high restaurant density and tourist-driven demand.
- State the final estimate as a range, not a single overprecise figure.
What a strong answer includes
- Anchors on population and a stated restaurants-per-capita ratio rather than guessing the total directly.
- Adjusts the ratio to reflect NYC's known unusually high restaurant density and tourist traffic.
- States the assumption clearly as a range, not a single overprecise figure.
- Sanity-checks against a known reference point without citing it as fact.
Common mistakes
- Using a generic per-capita ratio without adjusting for NYC's atypically high restaurant density.
- Not accounting for tourist demand inflating the number of restaurants beyond what residents alone would support.
Likely follow-up questions
- How would tourist traffic change your estimate for a city like NYC versus a suburb?
- What's the biggest weakness in your assumption?
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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