What does the Cone of Uncertainty illustrate?

The Cone of Uncertainty illustrates the amount of knowledge gained about the product over time. It demonstrates that as a project progresses and more information is gathered, the uncertainty regarding estimates—such as cost, effort, and time—decreases. Early in a project, there is a wide range of uncertainty because there are many unknowns. As the team works through iterations and gathers feedback, they gain insights that help refine their understanding of the product's requirements, risks, and challenges. This gradual decrease in uncertainty highlights the importance of iterative development and continuous feedback in the Scrum framework, allowing teams to make more accurate predictions and decisions as they advance through the project lifecycle.