Predictive modeling is a process where future outcome or actions are predicted based on historical and current data. Predictive modeling is a statistical analysis approach that helps organizations evaluate and calculate the probability of certain results.
Predictive modeling utilizes data mining and probability to forecast outcomes. The models are comprised of several variables that will most likely influence future results. After data is gathered for applicable variables, a statistical model is formulated.
Predictive modeling works by gathering data, developing a statistical model and applying probabilistic techniques to speculate or predict the probable outcome. With information technology, predictive modeling is utilized to assess and discover future trends. For example, software usage statistics can be scrutinized to forecast future use trends.
Additionally, predictive modeling is utilized on live systems to examine and make alterations to the underlying system when satisfying user and business demands.