To estimate the decay coefficient in the equation Ae^-at from the given graph, one can analyze the damped oscillation data. It is suggested to use the equilibrium position as a reference point for calculations. If the data is experimental, averaging the differences over multiple periods can provide a more accurate estimate. The discussion emphasizes the importance of correctly interpreting the graph for accurate coefficient estimation. Overall, understanding the relationship between the graph and the decay coefficient is crucial for solving the problem.