Quantitative
Bottom-up sizing
Start from a small unit and scale it up.
Facts checked against sources onWhat does Bottom-up sizing mean?
Bottom-up sizing begins with a small, concrete unit you can reason about, like the sales of one store in a day, and scales it up to the whole, like all stores across a year. It is often more grounded than top-down because it starts from something observable. Doing both and comparing them is a strong check.
Where does it come up in case interview prep?
- Cracking any estimation promptLesson in Guesstimates and market sizing
- How to use a country in a caseLesson in Markets and economies: the world a case lives in
- Estimating anything from almost nothingLesson in Market sizing and estimation
- 60-second structures and fast sizingLesson in Speed and precision
Related terms
- Market sizingEstimating how big a market or quantity is.
- Top-down sizingStart from a big total and narrow it down.
- ExhibitA chart or table the interviewer hands you to reason from.
- Percent versus percentage pointsA change in a rate is measured in points; its relative change in percent.
- CAGR (compound annual growth rate)The steady yearly growth rate that links a start value to an end value.
- Rule of 72Years to double is about 72 divided by the growth rate.
- Weighted averageAn average where each part counts in proportion to its size.
- Lakh and croreIndian number units: 1 lakh = 100,000 and 1 crore = 10 million.
Spotted something wrong or out of date? Report a mistake. We check every report and correct the page.