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Monte Carlo isn't more precise — it admits you can't be precise

2026-03-28Mariam K. · Head of Quant Research2 min read
Monte Carlo isn't more precise — it admits you can't be precise

We don't show 'expected value,' we show P10–P50–P90. Not because we fear accountability, but because expected value lies.

If you only look at a single expected value (say, an ARR expectation of $5M), you'll make decisions that don't match the real risk.

Our ARR Monte Carlo model shows: at the end of 5 years, P10 = $2.2M, P50 = $5.1M, P90 = $11.7M.

That means there's a 10% chance you only reach $2.2M (well below the minimum threshold for scaling). That P10 is what you should use as the basis for your 'capital-budget decision.'

In our product, every number shows three bands by default (P10 · P50 · P90), with a bootstrap confidence interval.

This is our biggest difference from traditional consulting firms: we don't pretend to be precise.

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