Predictive modeling predicts outcomes by using statistics. Predictive modeling is a form of data-mining and is generally used to predict the future, however it can be incorporated to predict any unknown event. Often, predictive modeling is selected on the basis of detection theory to attempt to speculate the probability of what will happen given a set amount of input data.

Models can incorporate one or multiple classifiers in aiming to find the probability of a data set belonging to another data set. When utilizing predictive modeling, data is collected, a statistical model is conceived, predictions are built, and the model is validated or changed as more data becomes available.

Benefits Include:

- Offers a clear vision of future outcomes
- Impacts future behaviors
- Fosters proactive behavior instead of reactive behavior
- Increases efficiency, profits and reduces costs

Predictive modeling is closely associated with machine learning, as it is more often referred to in education or research and development situations. When deployed commercially, predictive modeling is usually referred to as predictive analytics. A predictive model has the ability to learn how dissimilar points of data connect with each other.