Failure Rate
Percentage of products/services failing to meet standards.
Formula
Failure Rate = (Number of Failures / Total Units Produced) × 100
Real World
Samsung's Galaxy Note 7 had a catastrophic battery failure rate in 2016, forcing a global recall that cost the company over $5 billion and severely damaged its brand.
Exam Focus
Link failure rate directly to costs (warranty, recall, reputation) and to quality management methods for higher-mark responses.
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