The Service Level Management in the APM CE Menu has Transaction SLA and User SLA. These are associated with "Success Rate Observed" and "Average Time Observed", but we could not see a defect count in Success Rate Observed. Does the calculation of these values include the Defect transactions (e.g. Missing Response, Partial Response, Slow Response)?
Yes, the Success Rate Observed includes the following defect types as part of its calculation: Missing response, Partial response, Slow time. So defective transactions are part of a Success Rate Observed value.