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Which of the following is the ALE of this server?

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?

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A.
$500

B.
$5,000

C.
$25,000

D.
$50,000

8 Comments on “Which of the following is the ALE of this server?

  1. Danny says:

    In the question it states that the machine ALE is $5,000. then asks what the ALE is, so there shouldn’t be any math; it’s 5,000.

    Where do you get the 50,000 from?

    Formula is: ALE = SLE X ARO
    5,000(ALE) = N(never tells you) X 10(ARO)
    Asks for the ALE, it’s 5,000




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  2. christopher beck says:

    I hope this clarifies things for everyone. You must find the SLE before you can calculate the ALE. All the factors are in the problem.

    Asset Value=5,000
    Exposure Factor=10%
    Annual Rate of Occurrence=10

    SLE=AV(asset value)*EF(exposure factor)

    SLE=5,000 (cost of the server)* 10% (exposure factor)

    500= 5,000*.10

    You then can take the calculated SLE of 500 and factor it in. Without calculating the SLE you will not get a correct response.

    ALE= ARO (annual rate of occurrence) * SLE (single loss expectancy)

    ALE= 10 (ARO) * 500 (SLE)

    5,000=10*500

    The correct answer is 5,000 dollars




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  3. Bright says:

    Christopher Beck. You are the best teacher here. that is exactly how the calculation should go. Step by Step. Your analysis is very simple and clear. I thought you are a cissp man.




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