Yes, from what I could tell the frequency is the number of failures in the time period you have specified to run the simulation over... Is this correct? So if I were to run the simulation for 1 hour (I assume the time units are hours? is that correct?) the frequency would be the failures per hour? The values I am getting do not agree with my hand calculations for failures per hour...
Here is a quote from "Windchill Quality Solutions Getting Started Guide" (you can find this guide (in PDF format) in the attachment):
"Frequency- The frequency of failures over a time period".
When this checkbox is selected for calculation, failure frequency is calculated. The frequency value shown on the gate isnaffected by the failure rate multiplier. The failure rate multiplier is specified in Failure Rate Multiplier under General in the System file properties.