[ttul]

I have begun using Monte Carlo simulations for various modeling purposes at the company over the last two years. For example, I created a script to model a price increase and the expected outcome from that increase given a certain rate of churn. That gave me the confidence to go ahead with a 30% increase knowing that in the median case we would end up with more revenue even if some huge number of customers said bye bye.

The increase worked, and churn was lower than expected.

[harlanji]

Thanks for that and the business application, great result. This seems like a good method to make the case for serving more quality sensitive markets against the grain; that’s where I am coming from. Have heard the term, imagine it’ll be added to my tool shed soon. Thanks again.