Predictive Variables

Definition - What does Predictive Variables mean?

A predictive variable is a variable that has the ability to influence other variables. Because predictive variables have this ability, predictions can be made about the associated variables if one knows the value of the predictive variable. Predictive variable is an alternative term for independent variable. These predictive variables are often used to make predictions about the values of various factors.

Justipedia explains Predictive Variables

An example of a predictive variable is income. The reason why this variable is predictive is because it can give an indication as to what a person's spending habits may be, or how likely he or she may be able to be to get a loan. For example, if a man is only making $25,000.00 a year, he may be likely to spend considerably less than a man who makes $100,000.00 a year. The person making less may also less likely to qualify for a loan.

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