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In this paper, we present simulation results and analysis of 3-D magnetic flux leakage (MFL) signals due to the occurrence of a surface-breaking defect in a ferromagnetic specimen. The simulations and analysis are based on a magnetic dipole-based analytical model, presented in a previous paper. We exploit the tractability of the model and its amenability to simulation to analyze properties of the model as well as of the MFL fields it predicts, such as scale-invariance, effect of lift-off and defect shape, the utility of the tangential MFL component, and the sensitivity of MFL fields to parameters. The simulations and analysis show that the tangential MFL component is indeed a potentially critical part of MFL testing. It is also shown that the MFL field of a defect varies drastically with lift-off. We also exploit the model to develop a lift-off compensation technique which enables the prediction of the size of the defect for a range of lift-off values.