Predictive Modeling

Definition

Predictive modeling involves using historical data and statistical algorithms to make predictions about future outcomes.

Analogy

Think of predictive modeling as predicting who will win an upcoming basketball game based on previous performance stats and player information. Similarly, predictive modeling uses past data patterns and mathematical models to forecast future events or outcomes.

Related terms

Regression Analysis: This is a statistical technique used in predictive modeling to examine the relationship between a dependent variable and one or more independent variables.

Machine Learning: It is an application of artificial intelligence that uses algorithms to enable computers to learn from data and make predictions without being explicitly programmed.

Data Mining: This refers to the process of discovering patterns, relationships, and insights from large datasets using various statistical techniques.