Predictive model

Predictive modeling is a statistical technique used to predict the likelihood of an outcome.

For example, the success of a sale may depend on certain factors, such as the value of a sale or a product type. Using a predictive model, you can analyze data from within a process and use the insight to prioritize tasks, and make decisions to achieve the optimal outcome for your business.

For example, in an insurance company a process is dedicated to selling insurance. From previous experience, the company knows the success rate is higher when younger males are targeted. To increase the chances of meeting the sales target before the end of quarter, the company defines a model to calculate a score that helps prioritize where the insurance can be sold successfully.

Each model consists of a number of variables (predictors) that are likely to influence the outcome, and the corresponding weighting and scoring to work out the statistical model. See Manage a predictive model.