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What is the purpose of a story point in Agile methodology?

To express the estimated duration of a project

To measure the team's velocity over time

To express the estimated difficulty (effort) of a user story

The purpose of a story point in Agile methodology is to express the estimated difficulty (effort) of a user story. Story points are a unit of measure used in Agile project management to assess the complexity involved in completing a user story or task. This assessment allows teams to estimate the amount of work required relative to other user stories, enabling them to prioritize and plan their releases effectively.

Story points help teams account for various factors such as effort, complexity, risks, and uncertainty associated with implementation rather than providing a direct time estimate. This enables better forecasting and helps the team understand their capacity for delivering work. By focusing on the relative estimation of difficulty, teams can engage in productive discussions regarding the requirements and complexities of their work.

In contrast, options addressing duration, velocity, and financial investment do not align with the primary purpose of story points. Duration focuses on time estimation rather than complexity. Velocity, while an important Agile metric, measures the amount of work completed in a given iteration, not the difficulty of individual stories. Financial investment is typically captured through other means, such as cost estimations or budgeting, rather than through story points.

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To quantify the financial investment required for a story

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