A company is evaluating three possible actions regarding user data:

- Action A: share data with a partner.
- Action B: encrypt data before sharing.
- Action C: do not share the data.

Each action receives an ethical benefit score (higher is better) and a legal risk score (lower is better) as follows:

$$\begin{array}{c|c|c}
\text{Action} & \text{Ethical Benefit} & \text{Legal Risk} \\hline
A & 6 & 8 \
B & 9 & 3 \
C & 4 & 2 \
\end{array}$$

The overall decision score is calculated as

$$\text{Score}= \text{Ethical Benefit} - 0.5 \times \text{Legal Risk}.$$

Which action yields the highest overall score? Provide the score for each action and name the optimal action.

Question

A company is evaluating three possible actions regarding user data:

- Action A: share data with a partner.
- Action B: encrypt data before sharing.
- Action C: do not share the data.

Each action receives an ethical benefit score (higher is better) and a legal risk score (lower is better) as follows:

$$\begin{array}{c|c|c}
\text{Action} & \text{Ethical Benefit} & \text{Legal Risk} \\hline
A & 6 & 8 \
B & 9 & 3 \
C & 4 & 2 \
\end{array}$$

The overall decision score is calculated as

$$\text{Score}= \text{Ethical Benefit} - 0.5 \times \text{Legal Risk}.$$

Which action yields the highest overall score? Provide the score for each action and name the optimal action.

Accepted Answer

Scores - A: 2, B: 7.5, C: 3; Optimal action: B

Neco 2023 Data Processing Question 30