6 ms·
One problem: He assumes that the market is being adequately served, i.e. that supply and demand are relatively equal. What if tuners have a 1 year backlog and t
by Irregardless 13y ago
One problem: He assumes that the market is being adequately served, i.e. that supply and demand are relatively equal. What if tuners have a 1 year backlog and they're charging triple what you'd pay in other cities because there aren't nearly enough of them? This one piece of information could drastically affect the accuracy of any response.
Not exactly relevant when all you're concerned with is determining whether or not someone can "estimate the answer without any specialised knowledge". But, then again, why would you only be concerned with something so trivial?
- thatthatis 13y agoKnowing the correct order of magnitude is seldom trivial. Getting the correct order of magnitude quickly will make you a better decision maker (not to mention impress people whose opinion matters). An imbalance of supply can increase/decrease the population by maybe as much as 2x (or .5x). An order of magnitude can be the difference between a market that's worth considering and one that's too small to currently be serviceable. This is important because in business getting a right(ish) answer quickly is often more important than getting a precisely correct answer slowly. While you're measuring precise supply and demand, FermiCo has already concluded that the market is too small and moved on. p.s. irregardless is a great word.
- therandomguy 13y agoIf there is a 1 year backlog it is a temporary market state. The prices will rise, which will attract competition, which means more tuners, which means elimination of backlog. Free market etc.