Essentially, a parameter is a variable that plays a role in the physics calculation (temperature of left rear tyre, % brakes applied, and so on).
While numbers are fun to look at, as Wolfe said, just because there's more numbers being crunched doesn't necessarily mean they're being crunched realistically. You could make an arcade racer that crunches more numbers than all the racing sims ever made combined, if you were so inclined.
But to be fair, as both Forza and GT are sims for the most part, it would be interesting to compare how many paramaters each game is actually calculating. At the end of the day though, one sim may technically be taking more parameters into consideration, but if it's various paramaters affect the physics model in an abstract way and not as they would in real life, it could still wind up feeling like a less realistic sim.