You take the population of vehicles in the field (A) and...

You take the population of vehicles in the field (A) and multiply it by the probable rate of failure (B), then multiply the result by the average out-of-court settlement (C).A times B times C equals X. This is what it will cost if we don't initiate a recall.If X is greater than the cost of a recall, we recall all the cars and no one gets hurt.If X is less than the cost of a recall, then we don't recall.