Velocity in a Nutshell

Suppose a team estimates a project to include 200 points of work. They initially believe they will be able to complete twenty-five points per iteration, which means they will finish in eight iterations. However, once the project begins, their observed velocity is only twenty.  Without re-estimating any work they will have correctly identified that the project will take ten iterations rather than eight.

Agile Estimation and Planning - Mike Cohn

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