How the Campaign Simulation Works
- Calculate cost per lead: CPL = M / L
- Determine leads from $1000 budget: Leads = 1000 / CPL
- Generate random conversion count using binomial distribution: P_sim ~ Binomial(Leads, p̂)
- Calculate profit: Profit = (P_sim × C) - 1000
- Repeat 20 times to show outcome distribution
Key Metrics:
EV per Lead = (P × C - M) / L
ROAS = (P × C) / M
Confidence Interval = p̂ ± Z × √[p̂(1-p̂)/L]
The simulation shows the range of PROBABLE outcomes when running THE SAME campaign with a $1000 budget. Each bar represents one possible scenario based on current conversion probability.