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How-To film · 27

Monte Carlo in a cell

Model revenue and cost as distributions, widen uncertainty, and watch the launch decision change with the odds.

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  1. Good forecasts reveal uncertainty.
  2. Revenue and cost are ranges.
  3. Together, they reveal the odds.
  4. Now widen the cost range.
  5. The odds fall, and the decision changes to hold.
  6. Decide with odds, not guesses.

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