Week 6 - Privacy, Ethics and Your Data

Question 1

What is ethics in relation to data usage?

Answer 1

Ensuring data is used in a fair and open way rather than misleading, inappropriate or biased use of data in decision making.
Ethics is doing the right thing with data, considering the human impact from all slides, and making decisions based on your organisation, professional and personal values.

Question 2

What is privacy in relation to data usage?

Answer 2

Privacy is responsibly collecting, using and storing data about people, your customers, regulations and laws.

Question 3

What are the four fundamental questions of ethical reasoning?

Answer 3

 Who is/are the people involved?
 What action was actually taken or is being contemplated?
 What are the results or consequences of the act?
 Is the result fair or just for all stakeholders?

Question 4

What is anchoring?

Answer 4

A price anchor gives the consumer a frame of reference for valuing the product.
E.g. a $100 pair of shoes is discounted to $75. The anchor point is $100. The consumer sees the shoes have been discounted by 25% and believe they received a good deal.

Question 5

What is confirmation bias?

Answer 5

The tendency to use and or interpret data as a confirmation of an existing belief or theory while discounting the impact of contradictory evidence.

Question 6

Why is confirmation bias bad?

Answer 6

Can lead to statistical errors, as it influences the way people gather information and interpret it. Incorrect data can cause incorrect conclusions.

Question 7

What are three ways to combat confirmation bias?

Answer 7

 Ask neutral questions.
 Debate the decisions.
 Rethink your team.

Question 8

What are five risks of using big data?

Answer 8

• Dynamic pricing
• Your web cookies joined with your social media data and online shopping history for dynamic pricing.
• Impulse and full-price buyers can be charged different amounts for the same item.
• Dynamic flight and hotel pricing – accessing your online cookies lets the providers know your level of interest and they adjust prices accordingly.
• Sharing/selling your personal purchase history with health and life insurance companies.

Question 9

What are the three components of the ethics toolkit?

Answer 9

Ethical reasoning, ethics framework and ethical practices.

Question 10

What is ethical reasoning (ethics toolkit)?

Answer 10

 Checklist and or a set of questions.
 Aim: do no harm.
 Four fundamental questions.

Question 11

What is the ethics framework (ethics toolkit)?

Answer 11

 A formalised document or process.
 Achieve a holistic view of ethical practices.
 A data ethics framework can be used to identify and manage ethical issues at the start of a project that uses data and throughout.
 It encourages you to ask important questions about projects that use data.

Question 12

What are ethical practices (ethics toolkit)?

Answer 12

 Not intentionally exploiting users.
 Being aware of the hidden traps.
 Confirmation bias and achoring.

Question 13

Why are privacy policies important?

Answer 13

• To build trust.
• It is the law.
• Because many third parties require it.
• To evade costly and expensive legal battles.
• To make more money.
• To keep what you earn.
• Because there is too much to risk.

Question 14

Why is trust important?

Answer 14

Trust transparency is now a competitive advantage.

Question 15

How can businesses build trust?

Answer 15

Digital trust is very difficult for businesses to build with customers but very easy to lose.
Achieve trust through data ethics – focus on data ethics throughout the data supply chain from collection, aggregation, sharing and analysis to monetisation, storage and disposal.