Final answer:
An improperly grounded outlet is considered a latent defect, as it poses a hidden risk that is not immediately observable. Proper grounding is crucial for safety to prevent electric shock.
Step-by-step explanation:
An improperly grounded outlet is considered a latent defect. A latent defect is an issue that is not immediately observable and can cause problems or be hazardous in the future. This type of defect is usually discovered upon closer inspection or when an incident brings it to attention. In the case of an electrical outlet, proper grounding is critical for safety to ensure that any fault current is directed away from users and toward the ground, mitigating the risk of electric shock.
With reference to electrical safety, it's important to note that plastic insulation on live/hot wires serves to prevent both shock hazards and thermal hazards. A shock hazard occurs when an electric current passes through a person, while a thermal hazard occurs when excessive electrical current causes undesired heating effects, like starting a fire.