Objective 5.5 Evaluate the Effectiveness of Internal and External Ethical Policies CERTIFIED-ETHICAL-EMERGING-TECHNOLOGIST Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A mid-sized e-commerce company wants to strengthen its ethical policy on algorithmic pricing. The compliance lead has been asked to identify gaps in the current policy. They have access to the company's internal policy document, a report on recent customer complaints about price fluctuations, and a subscription to an industry ethics newsletter. Which approach would most effectively identify gaps?

   • ACompare the policy to a competitor's public-facing marketing materials.
   • BBenchmark the internal policy against published industry best practices for algorithmic pricing and analyze customer complaint themes.
   • CAnalyze customer complaints only, since they reflect direct stakeholder feedback.
   • DReview the internal policy document alone to check for internal consistency.
   Reveal Solution Discussion Select an answer first
2. 22expert · hard

   A retail company is evaluating its ethical policy on customer data usage. A survey of customers shows that 70% are comfortable with how their data is used. However, the company has also noticed a 15% increase in data-related complaints to the customer service team. The compliance team is unsure whether the policy is effective. What is the most appropriate interpretation of these conflicting signals?

   • AThe survey is invalid because the complaint increase proves that customers are not comfortable.
   • BThe policy is definitely effective because the survey shows a majority are comfortable.
   • CThe survey may be measuring general comfort, while the complaints may reflect specific incidents or edge cases that the policy does not address.
   • DThe complaints are irrelevant because the survey shows that most customers are comfortable.
   Reveal Solution Discussion Select an answer first
4. 23expert · hard

   A bank is conducting its annual health check of its ethical policy on algorithmic credit scoring. The compliance team has three data points: (1) the number of customer complaints about credit decisions has dropped 20%, (2) an internal audit found that 5% of models still use a prohibited variable, and (3) a recent industry report recommends a new fairness metric that the bank does not currently use. The team has limited resources and must prioritize. What should be the first priority?

   • AConduct a new survey of customers to understand their perception of the policy.
   • BCelebrate the 20% drop in complaints as evidence that the policy is working and take no further action.
   • CRemediate the 5% of models using the prohibited variable, as this is a direct violation of the current policy.
   • DAdopt the new fairness metric from the industry report to align with best practices.
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   A software company introduced a new ethical policy on the responsible use of customer data in product development. After one year, the compliance team wants to evaluate whether the policy is working. They have access to the following data: the number of reported violations, the severity of each violation, and the results of a recent employee survey on policy awareness. Which combination of metrics would provide the most balanced evaluation of policy effectiveness?

   • ACompare the policy text to the company's mission statement to ensure alignment.
   • BRely solely on the employee awareness survey results, since low awareness would explain any violations.
   • COnly count the total number of violations reported, regardless of severity.
   • DTrack the number and severity of violations over time and correlate them with employee awareness survey results.
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6. 25expert · hard

   A technology company is evaluating its ethical policy on AI transparency. The policy team has benchmarked the policy against industry best practices and found that it is missing a requirement for explaining AI decisions to end users. However, adding this requirement would require significant engineering effort and delay a major product launch. The team must decide whether to proceed. What is the most appropriate consideration?

   • AProceed with the launch immediately because the policy is only a guideline and not legally required.
   • BIgnore the benchmark because the company's own policy is sufficient.
   • CWeigh the long-term reputational and regulatory benefits of transparency against the short-term cost of delaying the product launch.
   • DAbandon the product launch entirely because the policy gap is unacceptable.
   Reveal Solution Discussion Select an answer first