4.3 Explain the Ethical and Privacy Considerations in AI-assisted Data Analysis, Including Controls to Prevent Data Exposure AI-TECHNICAL-PRACTITIONER Practice Questions (Page 5)

Questions 21–25

1. 21application · hard

   A financial institution uses AI to analyze transaction data for fraud detection. The institution is subject to both GDPR and local financial regulations. A customer requests that their transaction data be deleted. What is the most appropriate response?

   • ARefuse the deletion request because financial regulations take precedence over GDPR.
   • BDelete the data immediately to comply with GDPR.
   • CAnonymize the data and keep it for fraud detection purposes.
   • DAssess whether the data is subject to a legal retention requirement under financial regulations before deciding on the deletion request.
   Reveal Solution Discussion Select an answer first
2. 22expert · hard

   A government agency deploys an AI system to predict which welfare claims are likely to be fraudulent. The system is accurate overall but has a higher false-positive rate for a specific ethnic minority group. The agency is under pressure to reduce fraud losses. What is the most appropriate action?

   • AAdjust the decision threshold for the affected group to reduce false positives, even if it means missing some true fraud cases.
   • BDeploy the model as-is because it reduces overall fraud losses.
   • CPublish the model's false-positive rates by ethnicity to the public.
   • DRemove ethnicity from the model's features and deploy.
   Reveal Solution Discussion Select an answer first
4. 23application · medium

   A retail company collects customer browsing data to train a recommendation model. The company originally collected the data for website analytics. Now they want to use it to predict creditworthiness. What is the primary privacy concern?

   • AThe new purpose is incompatible with the original purpose for which the data was collected.
   • BThe recommendation model will be less accurate.
   • CThe data is too old to be accurate for credit prediction.
   • DThe data is not encrypted at rest.
   Reveal Solution Discussion Select an answer first
5. 24foundation · easy

   Which US state regulation grants California residents the right to know what personal information is collected about them and to request its deletion?

   • AFERPA (Family Educational Rights and Privacy Act)
   • BSOX (Sarbanes-Oxley Act)
   • CGDPR (General Data Protection Regulation)
   • DCCPA (California Consumer Privacy Act)
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   Which regulation is specifically designed to protect the privacy and personal data of individuals in the European Union and applies to any organization processing that data, regardless of where the organization is located?

   • APCI DSS (Payment Card Industry Data Security Standard)
   • BCCPA (California Consumer Privacy Act)
   • CGDPR (General Data Protection Regulation)
   • DHIPAA (Health Insurance Portability and Accountability Act)
   Reveal Solution Discussion Select an answer first