Nonparametric renewal function estimation and warranty cost estimation

Estimating the cost of warranties of a manufactured product is an important but complicated issue. Estimation procedures have to be based on usually scanty field data and also need to be robust. It can be easily shown that warranty costs can be expressed in terms of renewal functions. In this paper the authors develop a number of nonparametric estimators of the renewal function (and therefore of warranty cost) which are simple and computationally very efficient compared to earlier estimators.