Exam CCBA topic 1 question 193 discussion

C. Parametric modeling

BABOK Section 10.28: Estimation outlines various estimation techniques, including parametric estimation. According to the BABOK, parametric estimation uses a statistical relationship between historical data and variables to calculate an estimate for future activities. This technique applies when reliable historical data is available, as it enables the business analyst to estimate based on the relationship between a variable and the effort required. D. Analogous: Analogous estimating uses historical data from a similar past project to make an estimate. This technique is less precise than parametric modeling because it does not use specific parameters or scaling factors; instead, it is based on comparisons with similar past projects.