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Based upon the information in the previous scenario, what is the annualized rate of occurrence for a tornado at Atwood Landing's data center?

Answer Options

A

0.0025

B

0.005

C

0.01

D

0.015

Correct Answer: B

Explanation

The annualized rate of occurrence is the number of times that risk analysts expect a risk to happen in any given year. In this case, the analysts expect tornados once every 200 years, or 0.005 times per year.

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