Tony Yiu
1 min readApr 24, 2020

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Sorry for the late reply. I haven’t looked at this code in a long time but I believe that you should not multiply the wage by sims. If I remember correctly, sim_conversions_up is an array of conversions from each sim which is a random variable. So the first product in the equation is the revenue produced in each scenario (a.k.a. sim). The second is the expenses you face regardless of how much revenue you earned. This part is fixed and does not vary sim to sim.

For example, there could be 2 states of the world (sims=2), lots of sales vs. no sales. But in both you have to hire 10 employees for 100 bucks. Your cost in both states of the world is always $1,000. If we multiply further by 2 (since sims=2) to get $2,000, we would overstate the expense as we have 10 workers not 20. Hope this helps.

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Tony Yiu
Tony Yiu

Written by Tony Yiu

Data scientist. Founder Alpha Beta Blog. Doing my best to explain the complex in plain English. Support my writing: https://tonester524.medium.com/membership

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