Customer Lifetime Value Simulation Use your LTV model from Exercise 1.4. One source of uncertainty was already presented in Exercise 1.4—the retention rate. Rather than assuming that the average retention rate is experienced with certainty, simulate the actual retention of customers (use the binomial distribution for this). Also, assume that the actual retention rate is not known precisely, but follows a PERT distribution with uncertainty of

+/−5% around each of these rates. Provide 90% confidence intervals for the LTV after 1, 2, and 3 years.