DSCI test 3.docx - Clark Property Management Clark Property...

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Clark Property Management 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. George Clark’s management company has just taken on a new property in New Orleans East. George is especially concerned about the cost projections for replacing air conditioner compressors at this new property. He would like to simulate the number of compressor failures each year over the next 20 years. Clark feels he can simulate the New Orleans East Apartment building’s compressor failures by using data from the past year from a similar apartment building he manages in another New Orleans suburb. Last year’s data from the other apartment building are provided below. Number of Compressor Failures Frequency 0 21 1 42 2 91 3 98 4 70 5 21 6 7 Conduct a manual simulation for Clark Property Management to determine the average number of compressor failures per year. Then calculate the expected number of failures per year and compare this result with the average number of failures. Follow the approach demonstrated on the slides. For your random numbers, start at the beginning of row ten of the table and use the numbers reading across to the right. When you complete a row, move to row 11 and continue taking numbers to the right.
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Clark Property Management 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. George Clark is especially concerned about the cost projects for replacing air conditioner compressors. He would like to simulate the number of compressor failures each year over the next 20 years. Clark feels he can use data from the past year from a similar apartment building he manages in a New Orleans suburb to simulate the New Orleans East Apartment building. The data from the other apartment building are provided below. Number of Compressor Failures Frequency Probability Distributio n Cumulative Probability Distributio n Random Number Intervals 0 21 21/350 = .06 .06 1 – 6 1 42 42/350 = .12 .18 7 – 18 2 91 91/350 = .26 .44 19 – 44 3 98 98/350 = .28 .72 45 – 72 4 70 70/350 = .20 .92 73 – 92 5 21 21/350 = .06 .98 93 – 98 6 7 7/350 = .02 1.0 99 - 100 350 Conduct a manual simulation for Clark to determine the average number of compressor failures per year. Follow the approach demonstrated on the slides. For your random numbers, start at the beginning of row ten of the table and use the numbers reading across to the right. When you complete a row, move to row eleven and continue taking numbers to the right. Simulation results: Year Random Number No. of Breakdowns Year Random Number No. of Breakdowns 1 90 4 11 36 2 2 30 2 12 85 4 3 36 2 13 01 0 4 24 2 14 55 3 5 69 3 15 92 4 6 82 4 16 64 3 7 51 3 17 09 1 8 74 4 18 85 4 9 30 2 19 50 3 10 35 2 20 48 3 Total No. of Breakdowns = 55 Average No. of Breakdowns = 55/20 = 2.75 Expected No. of Breakdowns = (0)*(.06) + (1)*(.12) + (2)*(.26) + (3)*(.28) + (4)*(.20) + (5)*(.06) + (6)*(.02) = 2.7
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Port of New Orleans Fully loaded barges arrive at night in New Orleans following their long grips down the Mississippi River from industrial Midwestern cities.
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