Her Guan Teo

Victoria University of Wellington

Nonparametric estimation of the mean cumulative number/cost of automotive warranty claims

Automotive warranty involves both age and mileage limits. Age is known for all sold vehicles but the accumulated mileage is usually not known. The method introduced here uses a simple linear approach in modeling accumulated mileage, and the mean cumulative number/cost of automotive warranty claims is estimated as a function of age, mileage, as well as the actual time.