Tobacco Industry in the United States

Requirements Clarification & Assessment

1. Clarify the Objective:

   • Determine whether the focus is on revenue or consumption.
   • Confirm the time frame (annual, monthly, etc.).
   • Verify if the data should reflect the current year or historical data.
   • Define what constitutes the "tobacco industry" (cigarettes only, or inclusive of cigars, e-cigarettes, etc.).
   • Understand the purpose of the estimation (e.g., strategic decision-making, investment analysis).

2. Assumptions:

   • Revenue is calculated as Price per Unit x Number of Units Sold.
   • Consider the population of the U.S. as approximately 340 million.
   • Assume a breakdown of smokers by age group:
     • Group 1 (0-21 years): 5% smokers
     • Group 2 (22-64 years): 75% smokers
     • Group 3 (65+ years): 20% smokers
   • Define the average daily consumption per group and unit price.

3. Constraints:

   • Access to detailed demographic data.
   • Potential inaccuracies in consumption patterns and pricing.
   • Exclusion of exports and non-cigarette tobacco products.