DAC Data Ethics & Privacy 1 — Questions and Answers
Question 1: Which U.S. federal law specifically governs the privacy of health information and requires healthcare organizations to implement safeguards for patient data?
- GDPR
- CCPA
- HIPAA (Correct answer)
- FERPA
Correct answer: HIPAA
HIPAA (Health Insurance Portability and Accountability Act) sets national standards for protecting sensitive patient health information in the United States.
Question 2: In data ethics, what does the principle of 'data minimization' require?
- Collecting as much data as possible for future use
- Encrypting all collected data
- Collecting only the data necessary for a specified purpose (Correct answer)
- Deleting all data after 30 days
Correct answer: Collecting only the data necessary for a specified purpose
Data minimization means organizations should collect only the personal data that is adequate, relevant, and limited to what is necessary for the intended purpose.
Question 3: Which of the following best describes 'algorithmic bias' in data analytics?
- A flaw in database indexing that slows query performance
- Systematic and unfair discrimination in algorithm outputs due to biased training data or design (Correct answer)
- A statistical technique for reducing overfitting in models
- An error in data collection caused by sampling too few records
Correct answer: Systematic and unfair discrimination in algorithm outputs due to biased training data or design
Algorithmic bias occurs when an AI or statistical model produces systematically prejudiced results due to biased training data, flawed assumptions, or discriminatory design choices.
Question 4: A data analyst is publishing a report using a dataset that includes personally identifiable information (PII). Which technique best protects individual privacy while preserving data utility?
- Encrypting the file with a password
- Anonymization or de-identification of the PII fields (Correct answer)
- Storing the data on a private server
- Limiting the report to internal stakeholders only
Correct answer: Anonymization or de-identification of the PII fields
Anonymization or de-identification removes or masks PII so individuals cannot be identified, allowing the data to be used analytically without exposing personal information.
Question 5: Under the California Consumer Privacy Act (CCPA), which right allows consumers to request that businesses stop selling their personal information?
- Right to erasure
- Right to opt-out (Correct answer)
- Right to access
- Right to portability
Correct answer: Right to opt-out
The CCPA grants California residents the right to opt-out of the sale of their personal information to third parties.
Question 6: Which ethical framework emphasizes that data analytics decisions should maximize overall benefit to society, even if individual rights may be slightly infringed?
- Deontological ethics
- Virtue ethics
- Utilitarianism (Correct answer)
- Rights-based ethics
Correct answer: Utilitarianism
Utilitarianism evaluates actions based on their consequences, aiming to produce the greatest good for the greatest number of people.
Question 7: What is 'informed consent' in the context of data collection?
- A legal document signed by a data engineer before accessing production databases
- The process of notifying regulators before collecting data
- Ensuring individuals understand and agree to how their data will be collected and used (Correct answer)
- Automatic consent given when users continue using a service
Correct answer: Ensuring individuals understand and agree to how their data will be collected and used
Informed consent requires that individuals are clearly told how their data will be collected, used, and shared, and that they voluntarily agree before their data is collected.
DAC Data Ethics & Privacy 1
Which U.S. federal law specifically governs the privacy of health information and requires healthcare organizations to implement safeguards for patient data?