This report refines and improves upon a conceptual model and a mathematical procedure, based upon a blend of Likelihood Function Estimation (LIFE) and utility theory. Empirical studies conducted by the Air Force Military Personnel Center in 1975 and 1976 have shown that the LIFE procedure can be very useful in the prediction and study of dichotomous behavior, e.g., predicting attrition/success of a trainee in an Air Force Training program. The technique has been previously used to study attrition from the United States Air Force Academy and Basic Military training. By generalizing the LIFE technique it can be applied to the situation of studying and predicting any dichotomous dependent variable. Currently, the Air Force Human Resources Laboratory is continuing studies of the procedure to compare its usefulness to other mathematical methods. (Author)