Estimating Hotel Rooms in NYC: A Guide for FAANG Interviews
For aspiring or seasoned product managers preparing for FAANG interviews, understanding how to navigate through the variety of questions posed by interviewers is crucial. One of the challenges candidates may face is the estimation question, which tests the ability to apply logical reasoning to approach a problem with limited data. Here, we are looking at a specific estimation question: How many hotel rooms are there in NYC? Using structured frameworks for answering interview questions is vital, and in this blog post, we’ll explore how to tackle this question effectively.
Detailed Guide on Framework Application
Choosing a Framework
To navigate through an estimation question like this one, the appropriate framework to use is the Fermi Problem-Solving Framework. It is designed to break down large, complex, and often ambiguous problems into smaller, more solvable chunks.
Step-by-Step Fermi Framework Application
To apply the Fermi Framework to the question of estimating hotel rooms in NYC, you would:
- Identify the Components: Break down the larger problem into smaller pieces. In this case: the number of hotels in NYC and the average number of rooms per hotel.
- Gather Estimates for Each Component: If you do not have exact data, use logical estimations or known averages. For instance, one could estimate the number of hotels based on the city’s tourism data and average occupancy rates, and then estimate the average number of hotel rooms based on hotel size categorizations such as small, medium, and large.
- Calculate: Multiply your estimates to reach a rough total number of hotel rooms. For example, if you estimate there are 750 hotels in NYC and the average hotel has 250 rooms, then NYC might have approximately 187,500 hotel rooms.
Hypothetical Example
Let’s consider a hypothetical candidate approaching this question in the interview:
- Component Estimation: Based on my last visit to NYC and knowing it’s a major tourist and business travel hub, I would estimate there are around 800 hotels in the city. As for the rooms, I know hotels range from boutique (about 50 rooms) to large chains (over 1,000 rooms). Considering the mix, an average of 200 rooms per hotel seems reasonable.
- Calculation: Using these estimates, 800 hotels multiplied by an average of 200 rooms gives us 160,000 hotel rooms.
Fact Checks
For an estimation question, interviewers do not expect you to have exact numbers. However, they do expect reasonable assumptions. To check if our estimates are sensible, we can compare them with publicly available data or known benchmarks, such as reports on the tourism industry or hotel occupancy rates.
Communicating Effectively During the Interview
When answering, explain each assumption you make clearly, and describe your thought process. If you’re unsure about a data point, demonstrate how you would validate or adjust this assumption based on feedback or new information. Be prepared to adjust your estimates based on any data or insights the interviewer might provide.
Conclusion
Estimation questions, such as estimating the number of hotel rooms in NYC, provide interviewers with a window into your problem-solving and analytical skills. Remember to break the problem into components, make justified assumptions, and communicate your process transparently. Using the Fermi Problem-Solving Framework as a structured approach can help craft concise and logical answers to complex questions. It’s recommended to practice with various estimation questions to hone these skills and improve your intuitive grasp on creating reasonable estimates.