DAC Data Ethics & Privacy 2

Question 1

Which of the following is an example of a 'privacy by design' principle in data systems?

Accepted Answer

Building privacy safeguards into the system architecture from the start

Answer

Privacy by design means proactively embedding privacy protections into systems and processes during the design phase, not as an afterthought.

Question 2

A company shares its customers' purchase history with a third-party marketing firm without notifying customers. This action most likely violates which ethical principle?

Accepted Answer

Transparency

Answer

Transparency requires organizations to clearly disclose how they collect, use, and share personal data; sharing data without notifying customers violates this principle.

Question 3

What is 'differential privacy' as used in data analytics?

Accepted Answer

A mathematical framework that adds statistical noise to datasets to protect individual privacy while allowing aggregate analysis

Answer

Differential privacy is a mathematical technique that injects carefully calibrated noise into query results so that individual data points cannot be identified, while still allowing meaningful aggregate statistics.

Question 4

According to GDPR, what is the maximum fine for the most serious data protection violations?

Accepted Answer

€20 million or 4% of global annual turnover

Answer

GDPR's highest tier of fines for serious violations (such as violating core data processing principles) is up to €20 million or 4% of total global annual turnover, whichever is higher.

Question 5

A data scientist discovers their predictive model has significantly lower accuracy for minority demographic groups. What is the most ethical next step?

Accepted Answer

Investigate the training data for bias and retrain the model with balanced representation

Answer

Discovering disparate model performance across demographic groups requires investigating sources of bias in training data and retraining the model to ensure fair and equitable outcomes.

Data Analytics Certifications (DAC) Practice Test

Data Analytics Certifications (DAC) Practice Test

DAC Data Ethics & Privacy 2