Avoid discussing estimation processes that would take a long time for a team to execute or going into detail about business procedures that fall outside of the scope of a Scrum Master's typical duties. The interviewers want to know your process for gathering story estimates, velocity projection, and an estimated cost for a proposed scope of work.

Agile estimation is all about providing reliable estimates without investing too much time creating them. In an optimal setting, I prefer to work with my team to generate a backlog with stories that have basic assumptions and scope statements that provide enough detail for my team to point them. We hold estimation meetings to apply points to all of the stories as best we can. I expect there to be a lot of unknowns, but we lean on past experiences and select estimates that are the best fit for what we know at the time.

The team then breaks down a few stories and provides time estimates for the tasks. This data allows me to project a cost-per-point estimate and a total backlog estimate. Finally, we determine a projected velocity per sprint and use it to provide an estimate for how long the project will take.