Exam CAS-004 topic 1 question 161 discussion

$10 million overall investment, with 50% being solid-state drives (subject of the question). $5 million * .05 = $250,000

SLE=AV x EF / 10M * .50 (SSD Storage)=$5M ARO (given)=5% (.05) ALE=SLE x ARO / $5M x .05=$250,000

SLE=Total Investment×Percentage of Replacement SLE = $10,000,000 \times 0.5 SLE = $5,000,000 Now, plug in the correct values into the ALE formula: ALE = $5,000,000 \times 0.05 ALE = $250,000

ALE = Annual Luckily the Math is already in Annual. $10,000,000 Total investment SSD cost = 50% = $5,000,000 Per year burnout = $5,000,000 X .05 (5%) $250,000 ALE Math is Hard ;)

If the cost of replacing 5% of the solid-state storage each year is $250,000, then this cost represents both the Single Loss Expectancy (SLE) and the Annualized Loss Expectancy (ALE) for this particular risk scenario. The Single Loss Expectancy (SLE) is the estimated cost of a single loss event, which in this case is $250,000. The Annualized Loss Expectancy (ALE) is the estimated cost of this loss event occurring once per year, which is also $250,000 since the Annualized Rate of Occurrence (ARO) is 1 (once per year). Therefore, if the cost per year of replacing 5% of the solid-state storage is $250,000, then the ALE due to storage replacement is also $250,000.

5%(ALE) of 5 million is 250K

agree with CKL22

To determine the annual loss expectancy (ALE) due to storage replacement, we need to know the annual cost of replacing the storage and the probability that the replacement will be necessary. Based on the information provided, we know that the total cost of the storage solution is $10 million and that 50% of that cost was for solid-state storage. This means that the cost of the solid-state storage was $10 million * 50% = $5 million. We also know that the company is estimating that 5% of the solid-state storage will need to be replaced per year. This means that the annual cost of replacing the storage is $5 million * 5% = $250,000. To determine the ALE, we need to multiply the annual cost of replacement by the probability that the replacement will be necessary. In this case, the probability that the replacement will be necessary is 5%, so the ALE is $250,000 * 5% = $12,500. Therefore, the ALE due to storage replacement is $12,500.

10m*.05 = 500k