Warranty Analysis Exercise 1

A reliability engineer wants to predict warranty claims that are caused by defective heat exchangers in air conditioning units. The engineer collects and analyzes annual failure field data. * indicates censored data. The units will have a 10 year warranty. It costs $500 to repair a failed unit in the field.

Use the warranty prediction data in the file FieldData.mwx to forecast future warranty claims.

1. If the failure data is modeled using a Weibull distribution, show the predicted failures and predicted costs plots.
2. Is the Weibull distribution an appropriate reference distribution given the data? Why?
3. What is the range of the predicted number of failures within the next 5 years?
4. What is the range of the predicted cost of failures within the next 5 years?
5. If a warranty was sold for each unit in the field, what should be expected the minimum price of the 10 year warranty?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

Q:

Please see attached Document and give answers for all. Thanks Qz 9 Firm A uses straight-line depreciation. Firm B uses MACRS depreciation. Both firms bought $75,000 worth of equipment last year that...

Q:

Risk Analysis and Management of Construction and Operations in Offshore Wind Power Project Abstract: Many countries have increased the use of renewable energy and strongly promoted offshore wind...

Q:

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Q:

If the current spot rate is 2.10 (HC/FC) and the government undertakes policies to depreciate the currency 16%, what is the new spot rate? Note: 2.10 * 1.16 is not the right formula. Based on this,...

Q:

A thin ring made of a magnetic has a mean diameter d = 30 cm and supports a winding of N = 800 turns. The cross-sectional area of the ring is equal to S = 5.0 cm e. The ring has a cross-cut of width...

Q:

For each of the following scenarios, indicate whether a long-term asset has been impaired (Y for yes and N for no) and, if so, the amount of the loss that should be recorded. Asset _Carrying Amount _...

Q:

What do you see as your biggest strength/weakness?

Q:

Beta Watches completed the following selected transactions during 2013 and 2014: 2013 Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $ 440,000 and recorded that...

Q:

Data Structures Multiple Choice Part A What happens when you add beyond the initial size of an arraylist? A. A new array of a bigger size must be created B. the arraylist will not be able to accept...

Q:

Per Roberson, useful ratios in analyzing financial condition include Per Roberson, a reasonable Financial Solvency ratio might be: Per Roberson, is a dollar today worth more or less, than a dollar a...

Q:

Vanessa is planning on conducting a study that looks into how listening to music impacts learning. Specifically, she wants to know how well people can learn while listening to their favorite, or...

Q:

Please read Smith v. Goguen , 415 U.S. 566 (1974), available at https://scholar.google.com/scholar_case?case=14723025391522670978&hl=en&as_sdt=2&as_vis=1&oi=scholarr After reading the above case,...

Q:

Explain what early thoughts and beliefs existed about what caused mental illness. Describe one of the psychological traditions and how it furthered the beliefs about what causes mental illness from...

Q:

13. The following data pertain to Wistron Company's two products: Product X Product Y Sales in dollars $100,000 $80,000 Contribution margin ratio 48% 30% If fixed expenses for the company as a whole...

Q:

Rose Corporation manufactures state-of-the-art DVD players. It is a division of Sany TV, which manufactures televisions. Rose sells the DVD players to Sany, as well as to retail stores. The following...

Q:

Shareholders of Clovis Oncology Inc. brought a shareholder derivative suit alleging that the board of directors ignored red flags in the testing of a lung cancer treatment called Rocilentinib. The...

Q:

Using thermodynamic data from Appendix 4, calculate G at 258C for the process: 2SO 2 (g) + O 2 (g) 88n 2SO 3 (g) where all gases are at 1.00 atm pressure. Also calculate DG8 at 258C for this same...

Q:

1. Explain the limitations of common sense when it comes to achieving a detailed and accurate understanding of human behavior.

Q:

2. Give several examples of common sense or folk psychology that are incorrect.

Q:

3. Define skepticism and its role in scientific psychology.

Previous Question Next Question