A Logistic Diffusion Model of Extended Warranty Data
The extended warranty is very important for business investors for effective warranty planning. This study develops a mixed model based on logistic diffusion function and artificial neural networks. A logistic function or logistic curve is the most common sigmoid curve. It models the S-curve of growth of some set. The initial stage of growth is approximately exponential; then, as saturation begins, the growth slows, and at maturity, growth stops. A popular neural net element computes a linear combination of its input signals, and applies a bounded logistic function to the result; this model can be seen as a \"Smoothed\" variant of the classical threshold neuron.