THE PURPOSES OF THIS STUDY WERE TO DETERMINE THE MAJOR CHARACTERISTICS OF A PREDICTIVE MODEL FOR USE IN LOCATING AND ESTABLISHING AREA VOCATIONAL SCHOOLS, DEVELOP THIS PREDICTIVE MODEL, AND ANALYZE THE STATISTICAL SIGNIFICANCE OF THE FACTORS COMPRISING EACH OF THE CHARACTERISTICS. A LITERATURE REVIEW AND CONFERENCES WITH STATE AND LOCAL EDUCATIONAL LEADERS WERE USED TO IDENTIFY THE MAJOR ELEMENTS FOR THE MODEL. A SURVEY OF 94 SCHOOLS IN 14 STATES PROVIDED DATA WHICH WAS ANALYZED AND CATEGORIZED INTO THE MODEL'S ELEMENTS. A JURY OF 30 EDUCATORS RANKED THE ELEMENTS ON RELATIVE IMPORTANCE. THE THREE MAJOR CHARACTERISTICS OF THE MODEL WERE POTENTIAL ENROLLMENT, JOB OPPORTUNITIES FOR GRADUATES, AND FINANCIAL SUPPORT. THE MODEL WAS APPLIED TO TWO COMMUNITIES IN NEW MEXICO TO PREDICT WHETHER OR NOT THEY COULD SUCCESSFULLY SUPPORT AN AREA VOCATIONAL SCHOOL. WHEN THE DISCRIMINANT FUNCTION MODEL WAS APPLIED TO THE SAMPLE OF EXISTING AREA VOCATIONAL SCHOOLS, THE RESULTS COINCIDED WITH CLASSIFICATIONS MADE BY STATE VOCATIONAL DIRECTORS AND THE INVESTIGATOR IN 86.17 PERCENT OF THE INSTANCES. SUCH MODELS CAN BE USED BY EDUCATORS AS ANALOGUES REPRESENTING PROCESSES OR SYSTEMS UNDER STUDY. (EM)