easy
Single Answer
0Based upon the information in the previous scenario, what is the annualized loss expectancy for a tornado at Atwood Landing's data center?
Answer Options
A
$25,000
B
$50,000
C
$250,000
D
$500,000
Correct Answer: A
Explanation
The annualized loss expectancy is calculated by multiplying the single loss expectancy (SLE) by the annualized rate of occurrence (ARO). In this case, the SLE is $5,000,000, and the ARO is 0.005. Multiplying these numbers together gives you the ALE of $25,000.