“Applying the Fermi Estimation Technique to Business Problems”, 2010-03-01 (; backlinks; similar):
It is often necessary to make quick estimates when neither time nor resources are available for making traditional assessments. This is particularly true at the idea stage of product development when even a gross estimate could be useful for heading off ill-advised expenditures.
The Fermi question, with which the scientific and engineering community has long been comfortable, is a helpful starting point for gaining insight into order of magnitude estimation. Although numerous worked-out solutions to Fermi questions are available, a systematic approach to solving them is not.
This led the authors to develop a methodology which could be easily implemented in a traditional business course. A more pragmatic reason for introducing Fermi questions to business students is that corporations now employ these questions in the job interview process, as a means of gauging applicants’ analytical skills.
On this basis alone, business students should be taught the methodology, as it may immediately have relevance to furthering their careers.