Which estimation technique can utilize historical data to enhance accuracy?

The estimation technique that can utilize historical data to enhance accuracy is known as parametric model estimating. This approach uses statistical relationships between historical data and other variables to produce estimates. By analyzing past projects, this technique identifies trends and patterns that can be used to predict future outcomes with greater precision. For example, if historical data indicate that a certain project type typically requires a specific number of hours or resources per unit, these parameters can be applied to new projects to provide more reliable estimates.

Parametric estimating is particularly beneficial because it allows project managers to scale their estimates based on the size or complexity of the new project, leading to a more informed and data-driven estimation process. It also supports better budgeting and resource allocation by linking estimates directly to quantifiable past performance, thus enhancing accuracy.