Provided is an automated determination of an optimized parameterization of a scatterometry model for analysis of a sample diffracting structure having unknown parameters. A preprocessor determines from a plurality of floating model parameters, a reduced set of model parameters which can be reasonably floated in the scatterometry model based on a relative precision for each parameter determined from the Jacobian of measured spectral information with respect to each parameter. The relative precision for each parameter is determined in a manner which accounts for correlation between the parameters for a combination.