Mean time between failures of 1.6 million hours is 182 years, meaning that if you run 182 drives for a year very likely at least one will fail. Annual failure rate is the inverse of this, in "failures per hour" units, annualized.
Vendors may be overstating MTTF:
Maybe this has something to do with consumer versus enterprise disks, but might as well not take risks with your data.
Mean time to repair (MTTR) is the typical amount of time for a full repair, including drive replacement and rebuild. This varies a lot, from days to notice and replace a drive, to zero with a hot spare that already is an array member.
Putting it together, data loss is when the number of failures exceeds the redundancy of an array. As in, a secondary failure when the array is degraded. Failure modes, and so the formulas, depend on the RAID level.
RAID 5 would be a second failure on any drive. The first failure is MTTF divided by the number of drives. But the second must be within the degraded window, the chance of which is ( MTTR ) / ( MTTF / number of drives - 1 )
. Multiply both together and you get the chance of secondary drive failure.
That was full drive failure. Non-recoverable (aka unrecoverable) read errors can also be significant. The Segate ST8000DM002 that Backblaze likes has specs of 8 TB in size and a read error every 10^14 bits. (They measured 0.94% AFR.) Meaning, a full read of the drive will likely have a faulty sector 64% of the time. Drives may exceed this spec in practice, particularly if they are not very old. UREs may not matter if the array has redundancy and can correct it. Or the array only returns one bad sector which the file system didn't use anyway. Or if it hit an unimportant file. It is far more problematic if it causes the array to fail entirely.
Further reading:
Practically, always have a backup, external to the array, at the frequency required by your recovery point objective. Array redundancy is to reduce recovery time from drive failures, and will not protect you from all data loss scenarios.