What does predictive modeling estimate?

Predictive modeling estimates future outcomes based on historical data. It involves analyzing patterns and relationships in past data to build models that can forecast what is likely to happen next. For instance, in business, such models might be used to predict customer behavior, sales trends, or market changes by utilizing past performance data.

By leveraging established historical trends, the model uses statistical techniques and algorithms to make informed predictions that guide decision-making and strategy. This approach is essential for organizations aiming to anticipate future events and prepare accordingly, highlighting the effectiveness of learning from the past to project into the future. Other options mentioned do not accurately capture this fundamental aspect of predictive modeling.