Using Copulas to Model and Simulate Two-dimensional Warranty Data

This study focuses on the simulation of automotive warranty data, using a two‐dimensional (2D) parametric approach based on copulas. We start with the description of a real automotive warranty database and follow it through to the building of 2D parametric model for warranty prediction. The task of parameter fitting and measuring the quality of the fit is also addressed. The accuracy of the model proposed is compared with previously published non‐parametric models. Finally, using this 2D parametric model, data are generated and compared with the original data.