What is velocity in an agile context and how is it used for forecasting?

• A. Velocity is the amount of work completed per iteration; used to forecast remaining work and completion dates.
• B. Velocity is the team's speed in moving between offices.
• C. Velocity is the project's overall budget velocity.
• D. Velocity is the rate of defects found per iteration.

Answer: (A)

Velocity measures how much work a team completes in an iteration, usually expressed in story points or another unit of work. This historical throughput lets you forecast future work by looking at the average velocity over several iterations and applying it to the remaining backlog. By dividing the remaining work (in points) by the team's velocity, you estimate how many more iterations are needed and, with knowledge of iteration length, approximate completion dates. This approach supports planning releases, setting realistic expectations, and reframing what the team can accomplish in a given timeframe. It’s not about physical speed between offices, project budget velocity, or defects discovered per iteration, which are unrelated to forecasting throughput.