Correlated failure distribution for memory arrays having different groupings of memory cells is estimated by constructing memory unit models for the groupings based on multiple parameters, establishing failure conditions of the memory unit model using fast statistical analysis, calculating a fail boundary of the parameters for each memory unit model based on its corresponding failure conditions, and constructing memory array models characterized by the fail boundaries. Operation of a memory array model is repeatedly simulated with random values of the parameters assigned to the memory cells and peripheral logic elements to identify memory unit failures for each simulated operation. A mean and a variance is calculated for each memory array model, and an optimal architecture can thereafter be identified by selecting the grouping exhibiting the best mean and variance, subject to any other circuit requirements such as power or area.