Brain teasers often require viewing the problem at an obscure angle or finding a hidden word meaning or interpretation to discover the solution, a discovery often left to chance. Although finding a solution is likely somewhat correlated to intelligence and problem solving ability, the false negative rate is too high for the result to be meaningful.
Estimation questions, on the other hand, are completely different....because the answer doesn't matter, only your process. Every single product manager must be able to aggregate what should be innate approximate facts (An mp3 song is ~4MB, world population is ~7B, etc.) and develop a logical process to use these facts in determining a final answer. Other factors that this tests include mental math abilities (invaluable in nearly any aspect of a product manager's work and highly indicative of the raw intelligence need to work on a cutting-edge engineering team), as well as the process by which you can judge answer quality and quickly refine processes to be as accurate as possible.
I've yet to meet a decent product manager who didn't possess each and every one of these skills.
Read full article from (24) Does Google still ask estimation questions to Product Manager candidates? - Quora
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