ALE Question

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VT

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Aug 27, 2018, 1:48:53 PM8/27/18
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An electronic contect provider hosting websites related to art. The IT staff of that organization is concerned about the risk of an earthquake destroying their data center, which is valued at 8,000,000. After consulting with seismologists, they determine that an earthquake is likely to occur once every 50 years and, if one occured, it would completely destroy the facility. What is the ALE

a. 80,000
b. 160,000
c. 1,600,000
d. 8,000,000

Anil Kumar K

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Aug 27, 2018, 2:23:28 PM8/27/18
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SLE = AV * EF = 80,00,000 * 1
ALE = SLE * ARO = 80,00,000 * 1/50 = 160,000

So B is the answer

From: cissp...@googlegroups.com <cissp...@googlegroups.com> on behalf of VT <mgr...@gmail.com>
Sent: Monday, August 27, 2018 11:18:53 PM
To: CISSP Study Mailing List
Subject: [CCCure_CISSP_Talks] ALE Question
 
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Evans, Stephanie

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Aug 27, 2018, 2:25:07 PM8/27/18
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Your math is off by one 0. 

Regards,

Stephanie Evans, CVA, CSS, ITIL 
CISO Information Security Manager
Information Security Governance, Communications, and Employee Empowerment.
Pearson Chief Information Security Office - North America




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Anil Kumar K

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Aug 27, 2018, 2:29:43 PM8/27/18
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Uff... does that mean answer is C? Plz explain

From: cissp...@googlegroups.com <cissp...@googlegroups.com> on behalf of Evans, Stephanie <stephan...@pearson.com>
Sent: Monday, August 27, 2018 11:54:22 PM
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Subject: Re: [CCCure_CISSP_Talks] ALE Question
 
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Evans, Stephanie

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Aug 27, 2018, 2:38:54 PM8/27/18
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correct! if you add the 0's in the right place, answer C would be correct.

Regards,

Stephanie Evans, CVA, CSS, ITIL 
CISO Information Security Manager
Information Security Governance, Communications, and Employee Empowerment.
Pearson Chief Information Security Office - North America




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Venky T

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Aug 27, 2018, 5:35:19 PM8/27/18
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Thank you for your feedback Anil & Stephanie. I also selected C. But, I see this explanation (mentioned below) & states that B is the right answer. Can you or anyone give me some explanation pls ?

The annualized loss expectancy (ALE) is the product of the annualized rate of occurrence (ARO) and the single loss expectancy (SLE). The ARO in this example is 2 percent and the SLE is $8,000,000, giving an ALE of $160,000.  
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Uday Kiran

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Aug 27, 2018, 11:44:10 PM8/27/18
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Hi Venky,

Even I got it as B as the same formula used by Anil. I am confident on the formula.

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UdayKiran 


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Corey Shimmel

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Oct 16, 2018, 12:46:48 PM10/16/18
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8,000,000 / 50 = 160,000  
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