Parametric Estimating Notes: Definitions & Explanations PDF | Download eBooks
Study Parametric Estimating lecture notes PDF with project management definitions and explanation to study What is Parametric Estimating?. Study parametric estimating explanation with project management terms to review project management course for online MBA programs.
Parametric Estimating Definition:
Parametric estimating is an estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters.
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Parametric Estimating Notes:
It is important to estimate the costs and activity durations after the project is decomposed into tasks and activities. These estimates help to develop the project schedule and budget. There are different techniques that can be used for estimation. One of them is called parametric estimating. The parametric estimating uses the estimates data of the similar projects that are carried out in the past and based on that historical data, the estimates of the new project are made by using a special algorithm. The algorithm enables to develop a statistical relation between the historic data and other relevant variables in order to estimate the parameters of the new project. A quantitative way of estimating activity duration using this technique is to multiply the quantity of work with labor hours per unit work. The estimates can be of high accuracy in parametric estimating.
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