Algorithms Regulatory Frameworks & Compliance 4

Question 1

Which algorithmic bias type occurs when historical data used to train a model reflects past discriminatory practices?

Accepted Answer

Historical bias

Answer

Historical bias occurs when training data encodes past societal inequalities or discrimination, causing the algorithm to perpetuate those patterns.

Question 2

A company's recommendation algorithm is found to charge women higher prices than men for identical products. Which U.S. law is most directly implicated?

Accepted Answer

FTC Act Section 5 (unfair or deceptive practices)

Answer

FTC Act Section 5 prohibits unfair or deceptive acts in commerce, which can include discriminatory algorithmic pricing practices.

Question 3

What does 'explainability' specifically require of a high-risk algorithm under emerging AI regulations?

Accepted Answer

That stakeholders can understand why the algorithm produced a given output

Answer

Explainability requires that the reasoning behind an algorithm's output can be communicated in understandable terms to affected individuals or auditors.

Question 4

Under HIPAA, when is it permissible to use patient data to train a clinical prediction algorithm without individual consent?

Accepted Answer

When the data is de-identified according to HIPAA standards

Answer

HIPAA permits use of de-identified health information without authorization because it no longer constitutes protected health information (PHI).

Question 5

Which compliance concept requires organizations to assess an algorithm's potential privacy harms before deployment?

Accepted Answer

Privacy Impact Assessment (PIA)

Answer

A Privacy Impact Assessment systematically evaluates how a system collects, uses, and shares personal data and identifies risks before deployment.

Algorithms Practice Test

Algorithms Practice Test

Algorithms Regulatory Frameworks & Compliance 4