A method for using predictive modeling of a physical process in order to determine and implement a solution to the physical process. The method includes analyzing the physical process to determine the relevant physical relationships, observations, data, and outcome probabilities associated with the physical relationships of the physical process, and storing representations of the relevant physical relationships, observations, data and outcome probabilities in a memory of a computer. The method also includes recursively analyzing the stored representations by the computer, and generating at least one tree structure that models the physical process, the tree structure including at least one root node, a plurality of decision nodes, and a plurality of end nodes. The method further includes partitioning observations at each decision node into probable outcomes using target partitioning, generating a plurality of other decision nodes based on the target partitioning, determining a solution to the physical process based on criterion variables, by the computer using the tree structure of the physical process to arrive at an end node, and implementing a physical solution to the physical process.