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A parametric or cost estimating relationship expresses cost as a function of

  • A.one or more physical or performance parameters
  • B.the estimator's judgement alone
  • C.the contractor's quoted price
  • D.the accumulated overhead of the firm

Answer: A

Cost per megawatt, per square metre or per tonne of throughput is derived by regression from past projects and then applied to the new one. Its value depends entirely on the new project resembling those in the sample, which is a judgement the arithmetic cannot make.

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