Which of the following is not an example of the possible dark side of Big Data? (It’s not a graph.) Unfortunately, it’s both an example and a rule. Many large-scale corporations are already taking advantage of some of the better predictive capacity that big data can offer. How many of your friends or neighbors have used social networking sites to hunt down information about job candidates? Or used online databases to search for email addresses associated with past addresses for business transactions?
Even in its own commercial realm, big data is a potential dark side of some business applications. For example, insurers use data on potential risks to calculate rates for people who may be at risk of developing a certain disease. In order to make informed decisions, the companies need to make sure that they’re interpreting the data as accurately as possible. And that includes the use of statistical tools and mathematical formulas that sometimes can produce surprising results.
If you’re an insurer, and you suspect that your customer has become more “risky” to insure, then you may want to investigate whether or not your calculations are accurate enough. You may want to use some sort of statistical language to describe your customer’s propensity to become more “risky” over time. That way, you’ll be able to provide a more accurate estimate of how much you could potentially save on insurance in the future. In some ways, this type of statistical language is similar to what your local county may use when it decides how much money in taxes the residents are likely to turn over to a city for services such as fire and police. It doesn’t sound all that bad, but remember: politicians tend to favor spending public funds on services that will most likely reap them a share of the tax dollars in the future.
Which of the following is not an example of the possible dark side of big business? If a certain company reports profit results, then it may not necessarily be because its stock price is up. After all, it may just be because of the large number of customers it serves. Statistics, after all, are only estimates of the actual results of any given event. So it stands to reason that the profits that a company makes may in fact be influenced by factors outside of what is reported on any particular balance sheet.
Which of the following is not an example of the possible dark side of big business? Suppose that your business is considered “high risk.” Your financial statements might indeed list you as a high-risk firm. But what does this mean for your bottom line? In many ways it means that you are able to obtain credit at lower interest rates.
Which of the following is not an example of the possible dark side of big business? If a public company makes a profit, then it is likely that a large number of shareholders will see this profit as their own. And this is where a large amount of risk occurs. If there are too many shareholders seeing the profit as their own, then a crisis can occur. It is not difficult to imagine the chaos that would follow if too many shareholders saw the profit as their own. However, if the company makes enough profit, then there are shareholders who will see that profit as their own.
Which of the following is not an example of the possible dark side of big business? When a public company makes a profit, it is likely that a large amount of money will be paid out to stockholders as dividends. However, there are some investors who will choose to wait until a profit has been made before they decide to sell their shares. This could result in a shareholder being able to control a huge part of the company. If a large number of stocks are sold, then a shareholder could control a huge portion of the company.
Which of the following is not an example of the possible dark side of big business? Big businesses have the ability to use their profits to do good things for society. They can give back to charities and employ workers who would otherwise be out of work. In return for this, they pay a very large amount of taxes. The taxes the company pays help to keep the roads, bridges, and schools in our country safe and to allow us to live and work freely.