Given the vast size of the Milky Way, it is unlikely that we are the only intelligent lifeform to be found within it. Given that we only have one data point (the Earth), we are forced to use a long series of guesses to estimate the number of other intelligent lifeforms in the galaxy.
Let's say that we have made contact with an intelligent lifeform on another planet. How could we use that second data point to estimate the total number of lifeforms in the galaxy?
My approach is to assume that the Milky Way is a 2D disk, as it is $110 \text{ kly}$ in diameter but only $1 \text{ kly}$ thick. ($1 \text{ kly}$ = $1000 \text{ light-years}$). Also, I assume that the lifeform that we contact is the one that is closest to Earth.
Take the location of the nearest other civilization. Remove the z-coordinate so that it falls onto the 2D disk that I talked about earlier. Calculate the distance $D$ (measured in kly) to that planet from Earth. Since $1$ lifeform falls in the area given by $\pi D^2$, and the galaxy has a total area of $3025 \text{ kly}^2$, then the expected total number of lifeforms is given by
$$N = \frac{3025 \text{ kly}^2}{D^2}$$
First of all, is my solution correct? Second, is there a better way to do this?