Use Warranty Prediction to forecast future warranty claims or returns based on historical warranty data. A warranty analysis uses information about past warranty claims to predict the number and cost of warranty claims in the future. By fitting a distribution to your warranty data, you can estimate the number of expected failures in the next month, the next year, or other period of time. Using the results of the analysis, you can better allocate resources to address future product failures adequately.
Suppose the quality manager of a lawn equipment manufacturer needs to budget for future warranty claims. Lawn mowers are covered by a one-year warranty and the cost to the company for each warranty claim is $1000. Each month, the manager records the number of lawn mowers from each shipment that fails within the warranty period in order to project future warranty claims.
To perform warranty prediction, choose.