A method for verifying and improving a vehicle fault model is disclosed. The method includes analyzing the available field failure data that includes vehicle symptoms and failures for many vehicles. The method performs an analysis using the field failure data that includes using subject matter expert knowledge to determine the most significant failure modes and the most significant symptoms. The method also includes learning simulation parameters from the field failure data and simulating faults using the learned simulation parameters. The method further includes verifying and validating the fault model based on the most significant failure modes and the most significant symptoms from the what-if analysis and the faults identifies by the simulation, and using a diagnostic reasoner to analyze the revised fault model to generate estimated faults. The method then compares the estimated faults to the simulated faults to determine true detection and false alarm rates for a benefit analysis.