HBRI - Hogan Business Reasoning Inventory Numerical Estimation and Approximation Flashcards

A manufacturer produces 3 product lines generating $1.2M, $870K, and $640K respectively. Which is the best estimate of total revenue?

Answer: About $2.7M

$1,200K + $870K + $640K = $2,710K ≈ $2.7M.

A marketing budget is $96,000 and 35% is allocated to digital advertising. Approximately how much is spent on channels other than digital?

Answer: About $62,400

Digital spend = 35% × $96,000 = $33,600; remaining = $96,000 − $33,600 = $62,400.

Customer acquisition cost is $85 per customer. If the company onboards approximately 1,340 new customers in a quarter, what is the best estimate of total acquisition spend?

Answer: About $113,900

$85 × 1,340 = $113,900 in total acquisition spending.

A project has a $500,000 budget and is 40% complete after spending $185,000. Is the project on budget?

Answer: On budget — $185,000 is less than 40% of $500,000

40% of $500,000 = $200,000; actual spend of $185,000 is below that, so the project is on (or under) budget.

An investment of $75,000 is expected to return $9,750 annually. What is the approximate annual return rate?

Answer: About 13%

$9,750 ÷ $75,000 = 0.13 = 13% annual return rate.

A company's headcount grew from 215 to 280 over three years. Which is the closest estimate of the compound annual growth rate (CAGR)?

Answer: About 9%

CAGR = (280/215)^(1/3) − 1 ≈ 1.302^0.333 − 1 ≈ 0.091 ≈ 9%.