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Ian

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267 Meetings

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USD 289 / Coaching

3

warranty calculation

How did they do the following calculation?

Likelihood of failure within the first five years is 22%; expected replacement cost per car sold is € 1,100 which is also the minimum price to be charged to the customer for the replacement warranty.

Thank you

How did they do the following calculation?

Likelihood of failure within the first five years is 22%; expected replacement cost per car sold is € 1,100 which is also the minimum price to be charged to the customer for the replacement warranty.

Thank you

3 answers

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Book a coaching with Ian

100% Recommendation Rate

267 Meetings

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USD 289 / Coaching

Year 1 (7%) + Year 2 (5%) + Year 3 (4%) + Year 4 (2%) + Year 5 (4%) = 22%

Year 1 (7%) + Year 2 (5%) + Year 3 (4%) + Year 4 (2%) + Year 5 (4%) = 22%

Book a coaching with Clara

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Hello, it´s just leveraging the data that is stated in the case, table 1.

Hello, it´s just leveraging the data that is stated in the case, table 1.

Book a coaching with Henning

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Well, Table 1 gives the combined chance of battery failure of 22% in the first 5 years (sum of annual %-ages). The interviewer provides the battery replacement cost of 5k. 22% of 5k is 1.1k.

Well, Table 1 gives the combined chance of battery failure of 22% in the first 5 years (sum of annual %-ages). The interviewer provides the battery replacement cost of 5k. 22% of 5k is 1.1k.