Three-point estimating is a project management technique used to improve the accuracy of cost and time estimates. It involves three estimates for each task: the optimistic estimate (best-case scenario), the pessimistic estimate (worst-case scenario), and the most likely estimate (realistic scenario). This method helps account for uncertainty and variability in project planning. By averaging these three estimates, project managers can create a more reliable estimate that reflects potential risks and challenges. This approach is often used in conjunction with other techniques, such as PERT (Program Evaluation and Review Technique), to enhance decision-making and resource allocation in projects.