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
if the server crashes 10 times a year and ALE the cost of the server is 5000, the answer is 50,000
It would be $5,000 , the question states only 10% loss of data or function, so take 10% of 50k, that would be the ALE = 5K
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
This one stumped me also. I was thinking as Brian did. But the actual cost is 5K
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
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.
Good analysis Christopher
Amazing, this is a handy web page
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