When Predictions Go Only So Far

When Predictions Go Only So Far
Dell’s attempts to master PC pricing offer a case study in the challenges of predictive modeling. Dell learned a tough lesson a year ago. In the quarter that included the 2009 holiday season, its revenue jumped 11 percent, which sounds like good news: the company sold more computers than it had in the same quarter the year before. But its net income dropped 5 percent during the same period. Dell …
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