Full Guide: Story Points & Estimation

Why it's important:
Story point estimation in product backlog management plays a valuable role in efficient project execution. It is a flexible, team-oriented approach which helps manage the risks associated with over or under estimation and facilitates more realistic sprint commitments. It aids in effective communication within the team about the complexity of the work to be undertaken.

What it is:
Story points are a unit of measure for expressing the overall effort required to fully implement a product backlog item or any other piece of work. This technique allows the work to be estimated relative to other tasks, instead of assigning it a specific length of time.

How it works:
Each item on the product backlog is assigned a story point value, which represents the effort required to develop it. This includes not just coding, but also the effort for aspects like testing and communication. Teams typically use a sequence like the Fibonacci series (1, 2, 3, 5, 8, 13, etc) for the story points. The team then discusses and assigns story points based on their understanding of the task and its complexity.

Exam Tips: Answering Questions on Story Points & Estimation:
1. Understand the concept and purpose: Make sure you understand the use of story points and the reasons why they can be advantageous over traditional estimation methods.
2. Refer to real-world examples: When answering case-based questions, draw from real-world examples, consider the complexity and amount of work, which factors are considered in assigning a story point, and who is involved in the process.
3. Grasp the reasoning: When answering conceptual questions, focus on why story points are useful and how they align with agile principles. Understanding the concept of relative estimation is key.