Henry is the risk manager for Atwood Landing, a resort
community in the midwestern United States. The resort’s main
data center is located in northern Indiana in an area that is prone
to tornados. Henry recently undertook a replacement cost analysis
and determined that rebuilding and reconfiguring the data center
would cost $10 million.
Henry consulted with tornado experts, data center specialists, and
structural engineers. Together, they determined that a typical
tornado would cause approximately $5 million of damage to the
facility. The meteorologists determined that Atwood’s facility lies
in an area where they are likely to experience a tornado once every
200 years.
Based upon the information in this scenario, what is the exposure
factor for the effect of a tornado on Atwood Landing’s data center?
Select one of the following: