1. Clark Property Management is responsible for the maintenance, rental, and day-to-day operation of a large apartment complex on the east side of New Orleans. Air conditioning failures are relatively common, and cost an average of $1,525 each to repair. George Clark would like to simulate air conditioner failures in order to determine the amount he should budget for these repairs. Based on his records of recent years, along with manufacturer's reliability data, Clark establishes the following table of relative frequency of failures during one year: Failures Number of A.C. Probability (Relative Frequency) 0 0.06 1 0.13 2 0.28 3 0.13 4 0.20 5 0.15 6 0.05 Use Clark's data to simulate 50 years of failures. Based on your simulation, how much should Clark budget each year to cover the cost of A.C. repairs? 3:36 .5G 40 nswer & Explanation Related Questions Date:14-4-2021 Answer: Date:14-4-2021 We can use excel to run this simulation or it can be done manual Given Number of A.C Probablity Failures 0 0.06 1 0.13 2 0.28 3 0.13 4 0.2 5 0.15 6 0.05 Number Random Cumulative of A.C Probablity number Probability Failures Interval 0 0.06 0.06 00-06 1 0.13 0.19 07-19 2 0.28 0.47 20-47 Simu Step 3 0.13 0.60 48-60 4 0.2 0.80 61-80 From Access 5 0.15 0.95 81-95 2 4 AC 6 0.05 1.00 96-100 785 10 50 random numbers from (0-100) are either taken from coursehero.com 3:36 S.No 5G40 Number of AC repairs Cost of repair > 12 5 7625 4 6100 3 1 1525 44 5 7 45 567 55 5 7625 7625 6100 5 7625 8 00 2 3050 9 10 11 12 13 33262 4575 4575 3050 6 9150 2 3050 14 5 7625 15 4 6100 16 1 1525 17 2 3050 18 2 3050 19 4 6100 20 4 6100 21 4 6100 22 4 6100 23 24 32 4575 2 3050 25 2 3050 26 5 7625 27 28 22 2 3050 2 3050 coursehero.com