Methodology
A useful price
has an explainable basis.
Understand the equipment, coverage and assumptions behind the number—and where the evidence stops.
Begin with the exposure and the event.
What can we learn from a book? It depends on the equipment, the time it was tracked and what each repair means. Those definitions must match the coverage you want to offer.
Connect repairs to the benefit being priced.
How often repairs happen is one part of the picture. The terms, covered costs and limits tell us how much the warranty may need to pay.
Make limitations visible.
Sparse groups, unavailable history and unsupported assumptions should lead to clear restrictions. A successful calculation alone is not evidence that a price is accurate.
Testing the software does not prove that a model prices well. A qualified expert still needs to review the data, methods and results.