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Question - Edward Owen is responsible for the maintenance, rental, and day-to-day operation of several large apartment complexes on the upper east side of New York City. Owen is especially concerned about the cost projections for replacing air conditioner (A/C) compressors. He would like to simulate the number of A/C failures each month. Using data from similar apartment buildings he manages in a New York City suburb, Clark establishes the probability of failures during a month as follows:
Number of A/C
Failures Probability
0
0.10
1
0.17
2
0.21
3
0.28
4
0.16
5
0.07
6
0.01
Required -
(a) Simulate Owen's monthly A/C failures for a period of three years. Compute the average number of failures per month.
(b) Explain any difference between the simulated average failures and the expected value of failures computed by using the probability distribution.
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