Ethical Considerations of AI →hardMultiple ChoiceObjective-mapped

AI Associate Ethical Considerations of AI Practice Question

Exhibit

{
  "policy": {
    "model": "loan-approval-v2",
    "version": 1.2,
    "rules": [
      {
        "condition": "income >= 30000",
        "action": "approve"
      },
      {
        "condition": "credit_score >= 700",
        "action": "approve"
      },
      {
        "condition": "zip_code IN ['90210', '10001']",
        "action": "approve"
      }
    ],
    "default_action": "deny"
  }
}

Refer to the exhibit. An AI loan approval policy is defined as a JSON rule set. Which ethical issue is most prominent based on this policy?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

Potential for geographic discrimination due to zip code condition

The use of zip_code as an approval condition can lead to geographic discrimination (redlining). Option A is wrong because the rules are transparent (explicitly shown). Option B is wrong because income and credit score may be relevant, but zip code is problematic. Option D is wrong because the rules are defined, but accuracy is not directly addressed.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✗
Use of irrelevant attributes like income and credit score
Why it's wrong here
Income and credit score are typically relevant.
✗
Insufficient accuracy due to simple rules
Why it's wrong here
Accuracy is not the primary ethical issue here.
✓
Potential for geographic discrimination due to zip code condition
Why this is correct
Zip code can be a proxy for race or socioeconomic status, leading to discrimination.
✗
Lack of transparency in decision-making
Why it's wrong here
The policy is written, so transparency exists.

Go deeper

AI Associate Ethical Considerations of AI Practice Question

Exhibit

Why each option matters

Option-by-option breakdown

Related to this question