We know that in order to find the different arrangements which are possible we need to use the method of permutation.
The arrangement of a given word is calculated as the ratio of the factorial of number of letters to the product of factorial of numbers the number of times each letter is repeating.
Estimation is just giving a general answer to the situation and can be specified on specifics depending on the numbers used and whichever question it's asking. But also remember that whenever you estimate your answer will be an approximate answers, not an exact.