How do you determine the desired, min and max number of instances for EC2 Auto Scaling Group?

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How do you determine the desired, min and max capacity for EC2 Auto Scaling Group?

I am learning about Auto Scaling Group for EC2. When I create one, this screen shows the options for desired, min and max number of instances.

I understand the effects of this setting, but how would you set the number of min, max and desired instances here? Is there a way to benchmark and calculate or do we just use a random number?

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