Parametric estimation relies on which of the following to establish estimates?

Parametric estimation relies on which of the following to establish estimates?

• A. Contractor Quotes
• B. CER and System Characteristics
• C. Engineering Drawings
• D. Laboratory Experiments

Answer: (B)

Parametric estimation relies on cost estimating relationships (CERs) that tie cost to measurable system characteristics. By analyzing historical programs, CERs establish a formula where cost is a function of characteristics such as weight, size, performance parameters, or production rate. This approach captures how changes in the system’s traits—the things that drive expense—affect overall cost, often incorporating learning or scaling effects from past data. It’s particularly useful early in a program when detailed designs aren’t available but comparable projects exist to anchor the relationships. Contractor quotes reflect specific bids for a defined scope and don’t provide a generalizable model of how cost varies with system characteristics. Engineering drawings and detailed design data feed bottom-up estimates, which estimate cost from the exact components and labor required, rather than from a broad predictive relationship. Laboratory experiments yield performance or reliability data for testing purposes, not a ready-made cost model that applies across many similar systems.

Parametric estimation relies on cost estimating relationships (CERs) that tie cost to measurable system characteristics. By analyzing historical programs, CERs establish a formula where cost is a function of characteristics such as weight, size, performance parameters, or production rate. This approach captures how changes in the system’s traits—the things that drive expense—affect overall cost, often incorporating learning or scaling effects from past data. It’s particularly useful early in a program when detailed designs aren’t available but comparable projects exist to anchor the relationships.

Contractor quotes reflect specific bids for a defined scope and don’t provide a generalizable model of how cost varies with system characteristics. Engineering drawings and detailed design data feed bottom-up estimates, which estimate cost from the exact components and labor required, rather than from a broad predictive relationship. Laboratory experiments yield performance or reliability data for testing purposes, not a ready-made cost model that applies across many similar systems.