Module 7 Analysis of Warranty Data

Lesson M07-02

Text: Section 13, pages 2 – 11

Duration: 21 minutes

Data Setup & Calculations

Here, we introduce a common way to set up the failure and volumes data for the analysis. Then, we apply conditional failure probabilities to calculate the expected failures for different vintages of units at risk in the field. Finally, we see how by repeating this calculation for different vintages and different forecast periods, we can develop a complete forecast of future returns.