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An IT manager is estimating the mobile device budget for the upcoming year. Over the last five years, the number of devices that were replaced due to loss damage or theft steadily increased by 10%. Which of the following would BEST describe the estimated number of devices to be replaced next year?
Correct Answer: B
ARO - annualized rate of occurrence is a representation of the frequency of the event, measured in a standard year. In our case number of the defecive device per year. Annualized Loss Expectancy (ALE) is the expected monetary loss that can be expected for an asset due to a risk over a one year period. This question is asking about loss of devices in a year. Annual loss expectancy (ALE) is the loss (amount of money) due ARO. The question is about the number of the device, not about money.