What is the right term/theory for prediction of Binary Variables based upon their continuous value?
I would say that this approach falls under the umbrella of iterative rounding. I believe that the seminal paper regarding this kind of strategy is [1]. The heuristic outlined here differs in signifcant ways from the algorithm described in Jain's paper but I think the basic idea is in the same vein.


Jain, K. (2001). A factor 2 approximation algorithm for the generalized Steiner network problem. Combinatorica, 21(1), 39-60.