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Problem 1: Estimate the area of the colored region (in orange) by Monte-Carlo simulation with 5000 replications given the distances shown in the figure below.

2018_Monte-Carlo simulation.jpg

Problem 2: Quality assurance procedure of a manufacturer consists of 2 consecutive tests. Probability that a part passes the first quality test is 0.8. This probability remains the same for the second test if the part passed the first test. If a part fails the first test, then probability that it passes the next test is lower and estimated to be around 0.6. If a part passes the other, then it is reworked. Finally, if a part fails both tests then it is considered a lost cause and is scrapped. Using the U[0, 1] numbers given below:

Parts

1

2

3

4

5

6

7

8

9

10

Test 1

0.32

0.68

0.23

0.45

0.39

0.10

0.40

0.95

0.99

0.67

Test 2

0.66

0.86

0.78

0.63

0.16

0.68

0.91

0.80

0.61

0.64

a. Simulate the quality assurance procedure for 10 parts. Use your simulation results to estimate the probability that a part is used in production, reworked or scrapped.

b. Estimate the probability that a part that is send to rework had failed the first test.

c. Compute the true probabilities that a part is used in production, reworked or scrapped.

d. Compute the true probability that a part had passed the first test given that it is sent for rework.

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