Product manager interview estimation
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This document outlines the 7-step process for estimating answers to quantitative questions during a product manager interview: 1. Clarify the question by repeating it back and asking for clarification on any ambiguous aspects. 2. Catalog what is already known about the topic and what additional information needs to be computed to answer the question. 3. Develop an equation that models the relationships between the key factors to arrive at an estimated answer. 4. Consider alternative approaches and edge cases not addressed in the main equation. 5. Break the overall equation down into component sub-equations to estimate each variable. 6. State the assumptions made to estimate unknown variables and values in the equations.
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![Step 3: Make an
Equation
Most important part of the process
- This will help to demonstrate you can tackle
tough problems head on
- There can be multiple approach and not one
single approach
eg:
Bottom up approach
[# of gmail users in US ] x [ annual clicks per user]
x [average revenue per click]
or
top down approach
[Google US revenue] x [% revenue from ads] x [%
ad revenue from embedded] x [% embedded ad
revenue from Gmail]](https://image.slidesharecdn.com/productmanagerinterviewestimation-210928164046/85/Product-manager-interview-estimation-4-320.jpg)
![Step 5: Break it
Down
● Once you have ?nalized the equation
which you think will get the right
answer, it's time break it down.
● For each of the main equation
construct sub-equation.
eg:
[# Gmail users in the US] = Population of the US x
% of People with email x % of email users who use
Gmail](https://image.slidesharecdn.com/productmanagerinterviewestimation-210928164046/85/Product-manager-interview-estimation-6-320.jpg)
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Instance Administration – Managing SQL instances, firewall rules, performance tuning
Database-Level Admin – Tables, indexes, triggers, backups
Monitoring & High Availability – Query Store, auto tuning, geo-replication
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Tools & Services – Azure Portal, SSMS, Azure Monitor
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Product manager interview estimation
- 1. Product manager Interview Estimation Estimation questions are about process you take to solve them Cracking the PM Interview
- 2. Step 1: Clarify the Question eg: How much money does Gmail makes in ads every year. - Repeat the above question - Ask anything that's ambiguous about the question - Does money mean pro?t or revenue - Gmail.com or even enterprise etc...
- 3. Step 2: Catalog what you know (or Wish you knew) See what knowledge you have about the topic and see what needs to be computed. You can ask the interviewer about the key facts Key facts to know 1. Population of US 2. % of population who own Computer 3. Google's annual revenue 4. Cost per click of a typical advertisement 5. Number of ads shown on Gmail You can ask few of these facts but be prepared to compute these too
- 4. Step 3: Make an Equation Most important part of the process - This will help to demonstrate you can tackle tough problems head on - There can be multiple approach and not one single approach eg: Bottom up approach [# of gmail users in US ] x [ annual clicks per user] x [average revenue per click] or top down approach [Google US revenue] x [% revenue from ads] x [% ad revenue from embedded] x [% embedded ad revenue from Gmail]
- 5. Step 4: Think about edge cases and alternative sources ● Show case that you are detailed oriented and can challenge yourself ● Think carefully of situations that might not fall into framework you created eg: If you are asked to consider # of windows to wash in NY City have you considered car windows and broken windows
- 6. Step 5: Break it Down ● Once you have ?nalized the equation which you think will get the right answer, it's time break it down. ● For each of the main equation construct sub-equation. eg: [# Gmail users in the US] = Population of the US x % of People with email x % of email users who use Gmail
- 7. Step 6: Review & state Your assumptions ● Once you have final equation which is broken down into, You need to guess some numbers. ● Pick round numbers and state your assumptions clearly to the interviewer. ● Be sure to tell the interviewer why you are making the assumptions you are
- 8. Step 7: Do the Math ● Multiply all the values from the above numbers ● It has to be a ballpark ?gure not the exact one
- 9. Step 8: Sanity Check ● Make sure the value passes some quick sanity checks ● Go back through and check your work. If there's an issue, it's probably is one of the following areas ○ Original equation ○ Assumptions made ○ Arithmetic If you # of gmail users in US is 150 Mn then there is a problem. 50% of US population cant be using Gmail