In this paper, we assume that the failure time has Pareto distribution. Maximum likelihood estimate for the shape parameter of the Pareto distribution is obtained. Point prediction and prediction intervals for the future number of failures during the warranty period are derived. The effect on total warranty reserve cost is considered for three types of several warranty models, pro-rata, lump sum rebate and mixed warranty models of the non-repairable products. A numerical example is given to illustrate the theoretical results.

Paretodistribution,maximumlikelihoodestimation,prediction number of failures, warranty models.