Question 1

Acme Student Loan Company has developed an artificial intelligence algorithm that determines whether an

individual is likely to pay their bill or default. A person who is determined by the algorithm to be more likely

to default will receive frequent payment reminder calls, while those who are less likely to default will not

receive payment reminders.

Which of the following most accurately reflects the privacy concerns with Acme Student Loan Company using

artificial intelligence in this manner?

Options :

A :

If the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that the

algorithm does not have a disparate impact on protected classes in the output.

B :

If the algorithm makes automated decisions based on risk factors and public information, Acme need not

determine if the algorithm has a disparate impact on protected classes.

C :

If the algorithm’s methodology is disclosed to consumers, then it is acceptable for Acme to have a

disparate impact on protected classes.

D :

If the algorithm uses information about protected classes to make automated decisions, Acme must

ensure that the algorithm does not have a disparate impact on protected classes in the output.

Answer: B

Question 2

Which entities must comply with the Telemarketing Sales Rule?

Options :

A : For-profit organizations and for-profit telefunders regarding charitable solicitations

B : Nonprofit organizations calling on their own behalf

C : For-profit organizations calling businesses when a binding contract exists between them

D : For-profit and not-for-profit organizations when selling additional services to establish customers

Answer: D

Question 3

What important action should a health care provider take if the she wants to qualify for funds under the Health Information Technology for Economic and Clinical Health Act (HITECH)?

Options :

A : Make electronic health records (EHRs) part of regular care

B : Bill the majority of patients electronically for their health care

C : Send health information and appointment reminders to patients electronically

D : Keep electronic updates about the Health Insurance Portability and Accountability Act

Answer: A

Question 4

What privacy concept grants a consumer the right to view and correct errors on his or her credit report?

Options :

A : Access.

B : Notice.

C : Action.

D : Choice.

Answer: B

Question 5

Which of the following best describes an employer’s privacy-related responsibilities to an employee who has

left the workplace?

Options :

A :

An employer has a responsibility to maintain a former employee’s access to computer systems and

company data needed to support claims against the company such as discrimination.

B :

An employer has a responsibility to permanently delete or expunge all sensitive employment records to

minimize privacy risks to both the employer and former employee.

C :

An employer may consider any privacy-related responsibilities terminated, as the relationship between

employer and employee is considered primarily contractual.

D :

An employer has a responsibility to maintain the security and privacy of any sensitive employment

records retained for a legitimate business purpose.

Answer: B