CSSLP · Question #39
Della work as a project manager for BlueWell Inc. A threat with a dollar value of $250,000 is expected to happen in her project and the frequency of threat occurrence per year is 0.01. What will be th
The correct answer is B. $2,500. This question requires calculating the Annualized Loss Expectancy (ALE) based on a given Single Loss Expectancy (SLE) and Annualized Rate of Occurrence (ARO).
Question
Della work as a project manager for BlueWell Inc. A threat with a dollar value of $250,000 is expected to happen in her project and the frequency of threat occurrence per year is 0.01. What will be the annualized loss expectancy in her project?
Options
- A$2,000
- B$2,500
- C$3,510
- D$3,500
How the community answered
(67 responses)- A4% (3)
- B76% (51)
- C7% (5)
- D12% (8)
Why each option
This question requires calculating the Annualized Loss Expectancy (ALE) based on a given Single Loss Expectancy (SLE) and Annualized Rate of Occurrence (ARO).
$2,000 is an incorrect calculation and does not result from the given SLE and ARO values.
The Annualized Loss Expectancy (ALE) is calculated by multiplying the Single Loss Expectancy (SLE) by the Annualized Rate of Occurrence (ARO). Given an SLE of $250,000 and an ARO of 0.01, ALE = $250,000 * 0.01 = $2,500.
$3,510 is an incorrect calculation and does not result from the given SLE and ARO values.
$3,500 is an incorrect calculation and does not result from the given SLE and ARO values.
Concept tested: Annualized Loss Expectancy (ALE) calculation
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