With the increased emphasis on the quality of products, consumers look to warranties as financial guarantees of a product's reliability. The nature and extent of the warranty affect the sales, market share, costs and profits of many businesses. In some cases warranties are viewed as essential to the manufacturer's competitive position. Consumers, on the other hand, must decide between products with differing warranties or between different warranty options for the same product. The problem of calculating the costs and benefits of warranty policies is an important one.
Shlaes, Carole, "Estimation of Warranty Reserves: Methods and Models" (1992). Engineering and Technology Management Student Projects. 746.