An improved dynamic parameter model is presented based on cellular automata. The dynamic parameters, including direction parameter, empty parameter, and cognition parameter, are formulated to simplify tactically the process of making decisions for pedestrians. The improved model reflects the judgement of pedestrians on surrounding conditions and the action of choosing or decision. According to the two-dimensional cellular automaton Moore neighborhood we establish the pedestrian moving rule, and carry out corresponding simulations of pedestrian evacuation. The improved model considers the impact of pedestrian density near exits on the evacuation process. Simulated and experimental results demonstrate that the improvement makes sense due to the fact that except for the spatial distance to exits, people also choose an exit according to the pedestrian density around exits. The impact factors α, β, and γ are introduced to describe transition payoff, and their optimal values are determined through simulation. Moreover, the effects of pedestrian distribution, pedestrian density, and the width of exits on the evacuation time are discussed. The optimal exit layout, i.e., the optimal position and width, is offered. The comparison between the simulated results obtained with the improved model and that from a previous model and experiments indicates that the improved model can reproduce experimental results well. Thus, it has great significance for further study, and important instructional meaning for pedestrian evacuation so as to reduce the number of casualties.