AbstractsBusiness Management & Administration

This thesis presents a discussion of the Monte Carlo Analysis Technique as it can be applied to the determination of the cost of a product's warranty. This analysis technique is applied to a representative automobile consisting of an engine, a transmission and a braking system. The simulation performed represents in excess of 1.7 million miles of operation of this simulated automobile. The results obtained from this simulated experiment represent a good approximation.of the real world situation that presently exists in the field of automobile warranties.