By measuring the team's rate of progress (velocity) in terms of the number of size units of work [1] done in an iteration [2], you can arrive at an estimate of duration in terms of the number of iterations required to complete the remaining tasks: remaining size units of work divided by the teams velocity.
Instead of having to think about and account for the inevitable overheads that occur everyday, velocity gives us a way to map ideal time into elapsed time based on historic data.
1. ideal time or a relative measures of size
2. fixed length, comprised of working hours of working days
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