Consider the following data on major failures of a certain type of machine at a factory over the past 25 years. Compute the probabilities and the cumulative probabilities. Rewrite the Number of Failures in the last column so that the VLOOKUP function can be used appropriately in Excel to simulate that variable. Number Frequency Prob Cumulative Number of (Years) Prob of Failures Failures per Year 0 1 2 3 4 Total 15 6 2 1 1 25 1. In order to simulate the number of failures for the next 5 years, you generate the following random numbers. For each random number, write down the corresponding value for Number of Failures, based on the probability distribution table above. Random Number Failures 0.88 0.01 0.23 0.61 0.15 2. In the simulation above, how often are there more than 3 failures in a year? Answer:

Consider the following data on major failures of a certain type of machine at a factory over the past 25 years. Compute the probabilities and the cumulative probabilities. Rewrite the Number of Failures in the last column so that the VLOOKUP function can be used appropriately in Excel to simulate that variable. 1. In order to simulate the number of failures for the next 5 years, you generate the following random numbers. For each random number, write down the corresponding value for Number of Failures, based on the probability distribution table above. 2. In the simulation above, how often are there more than 3 failures in a year