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How much is the annual income of a beggar in Bangalore?

You can assume anything and everything under the Sun, just to try to keep the assumptions close to reality
I always start with an equation, for this question the equation which I assumed was:-

Amount per day * Number of Calendar Days (365)

Assumption 1- A beggar begs all day of the year
Now, I have divided a complete day in 4 parts
6 am to 10 am – High income
10 am to 4 pm – Low income
4 pm to 10 pm – High income
10 pm to 6 am  – No income 

Assumption 2 – The beggar will bet more money in slot 1 and 3
Assumption 3 – Beggar interacts with 500 people in each slot
Assumption 4 – The success ratio table

SlotSuccess RateNumber of people giving money
6 AM – 10 AM0.0345
10 AM – 4 PM0.0115
4 PM – 10 PM0.0575
10 PM – 6 AM0.0069
144

Assumption 5 – Probability of amount, I have safely assumed that 30% people will give Rs.2, 20% will give Rs.5 and 50% will give Rs.1

SlotSuccess RateNumber of people giving moneyAmount
6 AM – 10 AM0.034594.5
10 AM – 4 PM0.011531.5
4 PM – 10 PM0.0575157.5
10 PM – 6 AM0.006918.9
144302.4

Now we have Rs.302.4 per day income.
Annual amount = 302.4*365 =  Rs. 110,376 It doesn’t matter if the amount is high or low, what matters is that you have an approach to solve the problem. Few more things which you can add here are:-
1. Divide the year into seasons
2. Divide year into weekend and weekdays
3. Public Holidays

Keep Learning 🙂

Nitin Kamal

About TheDataMonkNewbie

I am the Co-Founder of The Data Monk. I have a total of 4+ years of analytics experience with 3+ years at Mu Sigma and 1 year at OYO. I am an active trader and a logically sarcastic idiot :)

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