Chapter 11, Problem 5E

To determine

To conduct: a simulation on the basis of the statistics to assign the random numbers.

Explanation of Solution

Assign random numbers to perform a statistical-based simulation that will use simulation to examine whether 3 babies are unlikely to be selected for any significant birth defects, a qualified baby option. Two-digit random numbers must be taken, reflecting the 100 babies, which is 00-99. Let 00-02 be some kind of big birth defect and let 03-99 be some kind of defect.