You can see the influence of the default K values on what could otherwise be a very complicated equation:
… Essentially, at default, the equation comes down to “bandwidth plus delay.” Make sure to note that the bandwidth metric is expressed in Kbps, and is actually computed as 10^7/BWmin. Also note that the sum/sigma of delays is expressed in tens of microseconds.
Contrary to popular opinion, delay values shown in interface output are not measured; they are calculated.
The delay values are identified based upon interface bandwidth. The following delay values are assigned in relation to interface speeds.
See also HERE.
Stuck-in-Active: Journal of an IT-Network Administrator 