Estimation question
What are the estimated number of “incidents” that could be reported by users of Waymo in the SF Bay Area?
- Estimation
- Hard
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What this question tests
Estimation combined with product judgment, since this question needs a defined scope for 'incidents' before counting.
How to approach it
- Define 'incidents' clearly: minor issues like hard braking or unexpected stops reported by riders, not just crashes.
- Estimate Waymo's SF Bay Area ride volume, assuming roughly a few thousand rides per day given its current robotaxi scale.
- Assume an incident report rate per ride, such as roughly 1 in 500 to 1,000 rides prompting a rider-reported incident.
- Multiply daily rides by the assumed report rate to get a daily incident count.
- Multiply by 365 for an annual estimate, adjusting slightly for service growth over the year.
- State the result as an order of magnitude, likely in the low thousands annually, with assumptions clearly flagged.
What a strong answer includes
- Defines 'incidents' explicitly as minor reported issues rather than only serious crashes, since scope changes the answer completely.
- Anchors on a specific, plausible daily ride volume for Waymo's current Bay Area scale rather than an arbitrary guess.
- States a clear incident rate assumption, roughly 1 in 500 to 1,000 rides, marked openly as an estimate.
- Lands on an order of magnitude, low thousands per year, with visible reasoning rather than a single unexplained number.
Common mistakes
- Skipping the scope definition and jumping straight into a number for an undefined term.
- Confusing Waymo's small robotaxi fleet scale with a much larger rideshare service like Uber.
Likely follow-up questions
- How would this estimate change if you included near-miss incidents detected by the vehicle itself, not just rider reports?
- How would you validate this estimate with real safety report data?
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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