Estimation uses numbers that are close to the original numbers in a problem, but which are easier to use in calculations. This way, you can get an idea about the value of the real answer.
Using estimation can also help you establish whether a real answer makes sense. For example, if you needed 100 paper plates and each pack of 50 costs $2.95, you could estimate that your total cost would be about $6.00, since you know that $2.95 is about $3.00.
Estimation does not mean making a random guess.