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1) Name each of the terms in the equation ALE = SLE X ARO.

2) What is the equation ALE = SLE X ARO used for? 3) In the equation ALE = SLE X ARO, what are the units in each term measured in?

5) What action should the management of Acme Widgets, Inc. take in the following situation? Justify your answer. Acme Widgets, Inc. sells widgets exclusively at the www.AcmeWidgets.com web store. Evil Widgets, LLC continues to engage an entity on the dark web to mount Distributed Denial of Services (DDoS) attacks against www.AcmeWidgets.com. Successful DDoS attacks continue to occurr at the rate of three times every four months. Acme management estimates that, on average, each DDos attack still costs $10,000 in lost sales. In addition, due to customer frustration with the DDos attacks, Acme management estimates that there are additional lost sales of $1,000 per month. The security firm now charges $8,300 per month to implement the mitigation to eliminate DDoS attacks. (Assume that the figures above are accurate, and will continue to be accurate in the future.) What should Acme management do?