A x B x C = X

A new car built by my company leaves somewhere traveling at 60 mph. The rear differential locks up. The car crashes and burns with everyone trapped inside.

Now: should we initiate a recall?

Take the number of vehicles in the field, A, multiply by the probable rate of failure, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than the cost of a recall, we don't do one.

Are there a lot of these kinds of accidents?

You wouldn't believe.

Which car company do you work for?

A major one.