ACCA Strategic Professional · Strategic Business Leader · Big data and data analytics
Elmstead Insurance wants to use telematics and social media data to set individual premiums. A data ethics committee reviews the plan. Which question would BEST test whether the use of data is ethically acceptable, beyond mere legal compliance?
The best test is whether customers would reasonably expect and accept the use of their data and whether the outcome is fair to them. Ethics goes beyond legal compliance to consider fairness, transparency and impact on individuals, unlike questions about speed, size or storage cost.
- AWould customers reasonably expect and accept this use of their data, and is the outcome fair to them?Correct
- BCan the data be processed faster than competitors can process theirs?
- CIs the data set large enough to be described as big data?
- DDoes the proposal reduce the cost of data storage?
Explanation
Ethical review looks at fairness, reasonable expectations, transparency and impact on individuals, not just whether processing is lawful or technically efficient. The other options concern speed, size and cost.
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