Analytics Process
Collect
→
Analyze
→
Insight
→
Action
Plans based on average inputs don't produce average results when relationships are nonlinear.
The Flaw of Averages—a business breaking even "on average" may lose money most of the time.
When Averages Work—linear systems with low variability relative to the mean.
Simulation Value—reveals outcome distributions, not just expected values.
Monte Carlo generates scenarios by sampling from input distributions for risk analysis.