312-50V11 · Question #443
The chance of a hard drive failure is once every three years. The cost to buy a new hard drive is $300. It will require 10 hours to restore the OS and software to the new hard disk. It will require a
The correct answer is A. $146. The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). Suppose than an asset is valued at $100,000, and the Exposure Factor (EF) for this asset is 25%. The single loss expectancy (SLE) then, is 25% $100,000
Question
The chance of a hard drive failure is once every three years. The cost to buy a new hard drive is $300. It will require 10 hours to restore the OS and software to the new hard disk. It will require a further 4 hours to restore the database from the last backup to the new hard disk. The recovery person earns $10/hour. Calculate the SLE, ARO, and ALE. Assume the EF = 1 (100%). What is the closest approximate cost of this replacement and recovery operation per year?
Options
- A$146
- B$1320
- C$440
- D$100
How the community answered
(31 responses)- A84% (26)
- B10% (3)
- C3% (1)
- D3% (1)
Explanation
The annualized loss expectancy (ALE) is the product of the annual rate of occurrence (ARO) and the single loss expectancy (SLE). Suppose than an asset is valued at $100,000, and the Exposure Factor (EF) for this asset is 25%. The single loss expectancy (SLE) then, is 25% * $100,000, or $25,000. In our example the ARO is 33%, and the SLE is 300+1410 (as EF=1). The ALO is thus: 33%(300+14*10) which equals 146. https://en.wikipedia.org/wiki/Annualized_loss_expectancy
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