Parametric estimation is a statistical technique used to estimate the characteristics of a population based on sample data. It assumes that the data follows a specific distribution, such as a normal distribution, allowing for the calculation of parameters like mean and variance. This method is commonly used in fields like economics and engineering to make predictions and inform decision-making. In parametric estimation, the parameters are derived from the sample data, which helps in making inferences about the larger population. This approach is often more efficient than non-parametric methods, especially when the underlying distribution is known, leading to more accurate and reliable results in various applications.