This paper is the continuation of a paper presented at the 13th Probabilistic Safety Assessment and Management Conference, in which a methodology of modeling failure modes of complex components was presented; see Paulos and Smith (2016). This methodology is not particularly helpful in the space industry where there is a lack of failure data, but is more helpful in industries that see a lot of component repairs and improvements, such as in the aircraft or automotive industries. The previous paper demonstrated how the typical approach of treating failure modes as being exponential in nature may yield optimistic predictions when estimating how improvements to components will perform in the future. It is more accurate to model the failure modes as a race in time; unfortunately, this does not give a closed-form solution. This paper uses simulation to solve for the model of the world, and the results compared to the standard methodology of treating the failure modes as being exponential random failures. The standard method is shown to have optimistic predictions, which will lead to prediction errors when failure modes are removed or “fixed.” The failure mode methodology presented in the first paper treated the data as being censored when the test stopped. In this paper, we will compare the results from treating the data as both censored and missing.