Excel Simulation and Report
gruizClark 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 Distribution |
Cumulative Probability Distribution |
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