1. An estimation method used by multiplying a base number by a chain of related percentages. It is frequently used in marketing to estimate the size of a target market.
Here is a step-by-step example of how one might use the Chain Ratio Method to estimate the number of TVs in the United States (numbers for illustration only):Question: How many TVs are in the US?
1. There are the roughly 300 million people in the US (This is the base number).
2. There are roughly 4 people per household: 300,000,000/4 = 75,000,000 households.
3. There are roughly 2 TVs per household: 75,000,000 * 2 = 150,000,000 TVs.
150 million TVs.