Predictive model

Concept and definition

Predictive model

What is Predictive model?

Predictive Modeling encompasses a set of methods that analyze the available data in order to predict its output. Normally the event to be predicted is future, such as the detection of non-payments, consumer behavior or the evolution of electricity consumption, however predictive modeling can be applied to unknown events regardless of time.

The predictive model thus gives rise to forecasts which, however, must be considered as probabilities and not as certain predictions, which will necessarily materialize. The plausibility of the results of the predictive models must be reported statistically. Then, their probability is conceivable depending on the size of the data set studied. Thus, the larger the number of data analyzed, the more the results of prognostic models can be considered as conceivable and accurate results.

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