Which mathematical model revolutionized customer lifetime value prediction by incorporating probability of customer churn into its formula, now widely used in retail analytics?

In the competitive retail landscape, mathematical models have become crucial for predicting customer lifetime value (CLV). These sophisticated algorithms help businesses forecast future revenue streams from individual customers, optimize marketing spend, and develop targeted retention strategies. How well do you understand the mathematical foundations behind modern CLV calculations that are transforming retail analytics?

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Pareto/NBD (Negative Binomial Distribution) Model
Monte Carlo Simulation Model
Bass Diffusion Model
Markov Chain Attribution Model