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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?

4) 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 has engaged an entity on the dark web to mount Distributed Denial of Services (DDoS) attacks against www.AcmeWidgets.com. Successful DDoS attacks have occurred three times in the past four months. Acme management estimates that, on average, each DDos attack has cost $10,000 in lost sales. The Acme IT Director has found a security firm that says that they can eliminate DDoS attacks, at a charge of $8,000 per month. (Assume that the figures above are accurate, and will continue to be accurate in the future.) What should Acme management do?