During project initiation, the team estimated next-iteration activities in story points and agreed each story point equaled one day of effort. Some activities are estimated at 2 story points and others at 100. What should the project manager ask the team to do next?

The correct answer is to decompose the large activities into smaller ones. In Agile, large estimates (like 100 story points) indicate a lack of understanding or excessive complexity. Decomposing these into smaller, more manageable activities (typically 1-3 days of effort, or 2-8 story points, depending on the team's scale) improves estimation accuracy, facilitates better planning, and allows for more frequent delivery of value. Negotiating estimates to make them smaller without decomposition is artificial and doesn't address the underlying uncertainty. Recalibrating the story point scale might be necessary later but doesn't solve the immediate problem of an unmanageably large estimate. Proceeding only with smaller activities avoids the problem rather than solving it, leaving significant work unaddressed.