What are the advantages and limitations of simulation models? 14-5. What is Monte Carlo simulation? What principles underlie its use, and what steps are followed in applying it? 14.14. Clark Property Management is responsible for the maintenance, rental, and tiny-to-day operation of a large apartment complex on the east side of New Orleans. George Clark is especially concerned about the cost projections for replacing air conditioner compressors. He would like to stimulate the number of compressor failures each year over the next 20 years. Using data from a similar apartment building he manages in a New Orleans suburb, Clark establishes a table of relative frequency of failures during a year as shown in the following table