Template:Warranty prediction

Warranty Prediction
Once a life data analysis has been performed on warranty data, this information can be used to predict how many warranty returns there will be in subsequent time periods. This methodology uses the concept of conditional reliability (see Chapter Basic Statistical Background) to calculate the probability of failure for the remaining units for each shipment time period. This conditional probability of failure is then multiplied by the number of units at risk from that particular shipment period that are still in the field (i.e. the suspensions) in order to predict the number of failures or warranty returns expected for this time period. The next example illustrates this.

Example 3: