Woodworth Property Management is responsible for the maintenance, rental, and day-to-day operation of a large apartment complex in El Paso. Bruce Woodworth is especially concerned about the cost projections for replacing air conditioner compressors. He would like to simulate the number of compressor failures each year over the next 20 years. Using data from a similar apartment building that he also manages, Woodworth establishes the following table of relative frequency of failures during a year:

He decides to simulate the 20-year period by selecting 2-digit random numbers from column 3 of Table F.4 (starting with the random number 50). Conduct the simulation for Woodworth. Is it common to have 3 or more consecutive years of operation with 2 or fewer compressor failures per year?

Table F.4

Transcribed Image Text:

NUMBER OF COMPRESSOR FAILURES PROBABILITY (RELATIVE FREQUENCY) 0 1 0.06 0.13 2 3 4 5 6 0.25 0.28 0.20 0.07 0.01