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A building is valued at $500,000. The ARO for a fire is once every 30 years. The ALE is $11,667. What ___ % is the Exposure Factor?
70%
50%
80%
60%
ALE = 11667; ARO = 1/30; ALE = SLE * ARO; 11667 = SLE * ARO; 11667 = SLE * (1/30); SLE = 11667*30 = 350010; Now that you have SLE, solve for its base components; SLE = AV * EF; 350010 = 500000 * EF; EF = 350010/500000 = .70002 ~ 70%;
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