New Zealand Statistical Association

NZSA 2009

Victoria University of Wellington

Simon Anastasiadis

Victoria University of Wellington

Understanding vehicle warranty claims from the observed driving pattern

Warranty claims arise as a result of product failure; the better manufacturers understand claims the more accurately they can plan to meet the costs of those claims and the clearer the quality of their product becomes. Vehicle failures depend on the usage of each vehicle. While manufacturers can track the age of the vehicle they are not able to observe the usage it is subject to, except at random points in time; i.e., when warranty claims are made.

We wish to infer the actual vehicle usage from the observed usage when warranty claims are made. An attempt is made to find a relationship between vehicle warranty claims and the driving pattern that can be observed at the time of warranty claims.
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