What is the difference between parametric estimating and analogous estimating?

What is the difference between parametric estimating and analogous estimating?

Parametric estimating uses statistical relationships between variables to estimate costs or durations, while analogous estimating relies on historical data from similar projects.

Can you give me an example of each method?

Sure! For parametric estimating, if you know that a project costs $100 per square foot, you can estimate a 1,000 square foot project to cost $100,000. For analogous estimating, if a similar project cost $200,000, you might estimate a new project of similar scope to also cost around that amount.

Which method is more accurate?

Parametric estimating is generally more accurate because it relies on specific data and statistical analysis, while analogous estimating can be less precise due to its reliance on historical data.

When should I use each method?

Use parametric estimating when you have reliable data and a clear relationship between variables. Use analogous estimating when you have limited data or need a quick estimate based on past projects.