• Kalpesh Agrawal

Failure time

The term "Failure time" is used to show the length of time from a certain starting point (Usually the starting point of the observation) until the death of life or failure of a product.

The term Failure time is widely applied in Life insurance, reliability study, medical research, and clinical trials.

It is now used in a wide range of useful applications in the finance and insurance industries, referred to as showing any time duration until a certain event of interest occurred. For example,

  • the time until the company becomes insolvent,

  • the time until the next tsunami strikes,

  • the time until an insured person makes the first health insurance or motor claim,

  • the time until a stock hits a striking price

In Life Insurance and mortality studies, the failure time is usually called a lifetime.


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