Skip to main content
Article
Seasonal Warranty Prediction Based on Recurrent Event Data
Statistics Preprints
  • Qianqian Shan, Iowa State University
  • Yili Hong, Virginia Tech
  • William Q Meeker, Jr., Iowa State University
Publication Date
11-20-2018
Abstract

Warranty return data from repairable systems, such as vehicles, usually result in recurrent event data. The non-homogeneous Poisson process (NHPP) model is used widely to describe such data. Seasonality in the repair frequencies and other variabilities, however, complicate the modeling of recurrent event data. Not much work has been done to address the seasonality, and this paper provides a general approach for the application of NHPP models with dynamic covariates to predict seasonal warranty returns. A hierarchical clustering method is used to stratify the population into groups that are more homogeneous than the than the overall population. The stratification facilitates modeling the recurrent event data with both time-varying and time-constant covariates. We demonstrate and validate the models using warranty claims data for two different vehicles. The results show that our approach provides important improvements in the predictive power of monthly events compared with models that do not take the season-ality into account.

Comments

This is a pre-print of a submitted article.

Language
en
Citation Information
Qianqian Shan, Yili Hong and William Q Meeker. "Seasonal Warranty Prediction Based on Recurrent Event Data" (2018)
Available at: http://works.bepress.com/wqmeeker/149/