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Story points of a user story indicates the relative weight of the story when compared to other stories in the project.
Generally people use the Fibonacci series (0,1,2,3,5,8,13,21…..) to allocate story points to stories.
The smallest story is given a number 1, the next bigger one 2 etc…
A story with story point 5 indicates that it is approximately 2 times bigger than a story with story point ‘2’, or five times bigger than a story with story point ‘1’.
How are the story points estimated?
Detailed story point estimation happens during the first half of the sprint planning meeting (iteration planning meeting)
The product owner explains the user story to be estimated to the team
Answers all the questions regarding the story series
Each team member gives a number to the story, based on the Fibonacci series. This is an individual exercise. While deciding on the user story, the team member is not allowed to discuss with other team members, except for asking doubts about the feature to be developed as per the user story.
When the scrum master say ‘Show’, all team members displays their individual estimates (story points)
Finally, the team discusses, debates and converge into a single estimate for the story, and that becomes the agreed upon story point for the user story.