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

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 3

A covered entity suffers a ransomware attack that affects the personal health information (PHI) of more than 500 individuals. According to Federal law under HIPAA, which of the following would the covered entity NOT have to report the breach to?

Options :

A : Department of Health and Human Services

B : The affected individuals

C : The local media

D : Medical providers

Answer: D

Question 4

Which of the following types of information would an organization generally NOT be required to disclose to

law enforcement?

Options :

A : Information about medication errors under the Food, Drug and Cosmetic Act

B : Money laundering information under the Bank Secrecy Act of 1970

C : Information about workspace injuries under OSHA requirements

D : Personal health information under the HIPAA Privacy Rule

Answer: D

Question 5

According to the FTC Report of 2012, what is the main goal of Privacy by Design?

Options :

A : Obtaining consumer consent when collecting sensitive data for certain purposes

B : Establishing a system of self-regulatory codes for mobile-related services

C : Incorporating privacy protections throughout the development process

D :

Implementing a system of standardization for privacy notices

Answer: C

Confidently Practice Online with Free CIPP-C Exam Cram

Buying Options: