Installing and maintaining sensors in a transportation network can be expensive. The motivation for this research is finding the best way to deploy finite resources and generate a network detection system in a manner that produces minimal estimation errors. The analysis uses a simulation-based real-time network traffic estimation and prediction system based on dynamic traffic assignment (DTA) methodology to analyze different levels of detection and different sensor locations in a portion of the Chesapeake Highway Advisories Routing Traffic (CHART) network (between Washington, D.C., and Baltimore, Maryland). This study provides a conceptual framework of the sensor location problem and a theoretical description of the objectives associated with the sensor location problem. A sensitivity analysis of the estimation and prediction quality with the DYNASMART-X real-time DTA system in relation to sensor number and location is conducted in the Maryland CHART network. The analysis considers both randomly generated location scenarios and scenarios based on engineering judgment The analysis reveals the importance of providing detection in specific locations of the network and the dependence of the value of additional detection on the specific location selected.