**Parametric estimating uses a statistical relationship between historical data and other variables (e.g., square footage in construction) to calculate an estimate for activity parameters, such as cost, budget, and duration.**

## What Is a Parametric Estimate?

A parametric estimate is a type of estimate that uses mathematical models to predict the costs of a project. This type of estimate is often used for large projects where the cost is too difficult to estimate using traditional methods.

Parametric estimates are based on historical data and trends. The data is used to create a mathematical model that can be used to predict the cost of a project.

This model is then used to generate an estimate for the project. Parametric estimates are generally more accurate than traditional estimates.

This is because they take into account more factors that can affect the cost of a project. traditional estimates often only consider the size of the project.

Parametric estimates can be used for both fixed–price and time and materials contracts. This type of estimate is often used in conjunction with other types of estimates to create a more accurate picture of the project’s costs.

Parametric estimates are not without their criticisms. Some argue that the data used to create the models is often inaccurate. Others argue that the models are too complex and difficult to understand.

Despite these criticisms, parametric estimates are a valuable tool that can be used to predict the cost of a project. This type of estimate should be used in conjunction with other types

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