Authors:-D. T. Patel, M. N. Patel
Abstract:-In this paper we have used a Bayesian approach to determine the optimal warranty lengths. The power function distribution is employed to describe the product life time under multiply type-II censoring scheme. The optimal warranty is that which maximize the expected utility of the product. We have considered a combination of free replacement policy and pro-rata policy for warranty. A numerical data is used to exemplify the theory. A sensitivity analysis is carried out to check the effect of hyper parameters on the optimal warranty length and the optimal value of expected utility.
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