Joe, the system administrator, has been asked to calculate the Annual Loss Expectancy (ALE) for
a $5,000 server, which often crashes. In the past year, the server has crashed 10 times, requiring
a system reboot to recover with only 10% loss of data or function. Which of the following is the
ALE of this server?
A.
$500
B.
$5,000
C.
$25,000
D.
$50,000
annualized loss expectancy (ALE). This can be calculated by multiplying the SLE ((500*10)/100 = 500 if we allow 10% data loss) by the annualized rate of occurrence (ARO). We said that the server failed 10 times last year, so the SLE × ARO would be $500 × 10, which equals $5000 (the ALE)
if I am wrong please comment
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5000x10x(10/100)=5000
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