CAF-3 · Chapter 1

Ethical Considerations MCQs with Answers

15 multiple-choice questions on Ethical Considerations for CAF-3 Data, Systems and Risks. Try each one before revealing the answer and explanation.

1. Question 1

   A retail store categorizes its customers' payment methods as 'Cash', 'Credit Card', or 'Mobile Wallet'. Since there is no mathematical ranking to these categories, this is an example of:

   • A) Continuous Data
   • B) Ordinal Data
   • C) Nominal Data
   • D) Discrete Data
   Show answer & explanation

   Answer: C) Nominal Data

   Nominal data involves descriptive categories that have no inherent mathematical order or ranking

2. Question 2

   A ride-hailing app asks users to rate their journey as 'Excellent', 'Average', or 'Poor'. What type of data is this?

   • A) Nominal Data
   • B) Ordinal Data
   • C) Discrete Data
   • D) Unstructured Data
   Show answer & explanation

   Answer: B) Ordinal Data

   Ordinal data contains categories with a meaningful order or sequence, but the exact mathematical distance between the categories cannot be measured

3. Question 3

   The system dashboard of a logistics company shows exactly 145 active delivery riders in the city. This represents:

   • A) Continuous Data
   • B) Discrete Data
   • C) Qualitative Data
   • D) Semi-structured Data
   Show answer & explanation

   Answer: B) Discrete Data

   Discrete data consists of countable, distinct whole numbers that cannot be broken down into fractions (e.g., you cannot have 145.5 riders)

4. Question 4

   A delivery truck's GPS records its exact distance traveled as 14.65 kilometers. What type of data is this?

   • A) Continuous Data
   • B) Discrete Data
   • C) Nominal Data
   • D) Ordinal Data
   Show answer & explanation

   Answer: A) Continuous Data

   Continuous data represents measurable values that can take any value within a range, including decimals and fractions . --------------------------------------------------------------------------------

5. Question 5

   A bank's relational database stores customer transaction histories in strict, predefined rows and columns (e.g., Date, Description, Amount). This is an example of:

   • A) Unstructured Data
   • B) Structured Data
   • C) Semi-structured Data
   • D) Qualitative Data
   Show answer & explanation

   Answer: B) Structured Data

   Structured data is highly organized in predefined formats (like rows and columns in an SQL database), making it easy for systems to process

6. Question 6

   Customers frequently leave reviews on a company's Facebook page in the form of text paragraphs, emojis, and images. This type of data lacks a predefined format and is known as:

   • A) Structured Data
   • B) Semi-structured Data
   • C) Unstructured Data
   • D) Discrete Data
   Show answer & explanation

   Answer: C) Unstructured Data

   Unstructured data has no rigid format, making it difficult for computers to process directly (e.g., social media posts, videos, emails)

7. Question 7

   Which of the following technologies is primarily used by organizations to understand the hidden emotions (e.g., happy, angry) within unstructured customer feedback?

   • A) Natural Language Processing (NLP)
   • B) Sentiment Analysis
   • C) Extensible Markup Language (XML)
   • D) Relational Databases
   Show answer & explanation

   Answer: B) Sentiment Analysis

   Sentiment Analysis is a key tech tool used to evaluate the tone and emotion behind unstructured text data

8. Question 8

   A web application transmits user profile data using JSON (JavaScript Object Notation), which uses tags to organize data but lacks a rigid table format. This is an example of:

   • A) Structured Data
   • B) Unstructured Data
   • C) Semi-structured Data
   • D) Nominal Data
   Show answer & explanation

   Answer: C) Semi-structured Data

   Semi-structured data is not in a rigid table but uses organizational tags or markers (like JSON, XML, or HTML) to separate elements . --------------------------------------------------------------------------------

9. Question 9

   A marketing team designs a brand new questionnaire and distributes it to 500 customers to gather fresh feedback on a recently launched product. This is an example of collecting:

   • A) Secondary Data
   • B) External Data
   • C) Primary Data
   • D) Unstructured Data
   Show answer & explanation

   Answer: C) Primary Data

   Primary data is collected firsthand specifically for a new, targeted purpose, such as conducting surveys or interviews

10. Question 10

    An investment firm purchases an industry report published by a government agency last year to analyze market trends. What type of data is the firm using?

    • A) Primary Data
    • B) Secondary Data
    • C) Internal Data
    • D) Qualitative Data
    Show answer & explanation

    Answer: B) Secondary Data

    Secondary data is pre-existing data that was originally collected by someone else for another purpose and is now being repurposed

11. Question 11

    A food delivery app connects to the Google Maps API to fetch live traffic updates. Based on its origin, this data is classified as:

    • A) Internal Data
    • B) External Data
    • C) Primary Data
    • D) Nominal Data
    Show answer & explanation

    Answer: B) External Data

    External data is sourced from outside the organization's own operations, such as third-party APIs, market reports, or social media . --------------------------------------------------------------------------------

12. Question 12

    A mobile application collects users' contact lists without explicitly informing them or explaining the purpose of this collection. Which ethical consideration is being violated?

    • A) Privacy
    • B) Fairness
    • C) Security
    • D) Transparency
    Show answer & explanation

    Answer: D) Transparency

    Transparency requires organizations to be explicitly clear with users about how and why their data is being collected

13. Question 13

    Ensuring that an AI algorithm used for shortlisting job applicants does not systematically reject candidates from a specific demographic background falls under which ethical principle?

    • A) Fairness
    • B) Privacy
    • C) Security
    • D) Transparency
    Show answer & explanation

    Answer: A) Fairness

    Fairness ensures that data collection and subsequent analysis do not lead to discriminatory or biased outcomes

14. Question 14

    A hospital implements heavy encryption and firewalls to protect its patients' electronic health records from unauthorized hacker access. Which ethical consideration is the hospital enforcing?

    • A) Transparency
    • B) Privacy
    • C) Fairness
    • D) Security
    Show answer & explanation

    Answer: D) Security

    Security involves protecting stored data from unauthorized access or cyber breaches

15. Question 15

    Which of the following principles refers to respecting an individual's right to control their own personal data?

    • A) Security
    • B) Transparency
    • C) Privacy
    • D) Fairness
    Show answer & explanation

    Answer: C) Privacy

    Privacy is the ethical obligation to respect a user's right to control their personal data and who has access to it