Question

An automated bank loan approval app only accepts applications from one zip code. This is a bias in the

a. algorithm design
b. data used to teach the algorithm
c. user interface
d. stakeholder interviews

Answer 1

The correct answer is b. data used to teach the algorithm.

The bias of only accepting applications from one zip code in an automated bank loan approval app is a flaw in the data used to teach the algorithm.

Step-by-step explanation:

The correct answer is b. data used to teach the algorithm.

In the given scenario, the bias of only accepting applications from one zip code is a flaw in the data used to teach the algorithm. When developing an automated bank loan approval app, the algorithm is trained on a dataset of loan applications and their outcomes. If the dataset used to train the algorithm is biased and only contains applications from one zip code, then the algorithm will learn to favor applications from that particular zip code, leading to an unfair bias in the loan approval process.

This bias can have negative consequences, such as systematically excluding potential borrowers from other zip codes who may be equally qualified to receive a loan. To ensure fairness in the loan approval process, it is essential to use a diverse and representative dataset that includes applications from various zip codes.