I highly recommend taking 15 minutes to experiment with this online algorithm simulation that demonstrates that defining an algorithm's purpose may affect bias as much as the coding of the algorithm itself.
I highly recommend taking 15 minutes to experiment with
this online algorithm simulation tool. The algorithm example used is known as
COMPAS - one of several different “risk assessment” tools used in the US
criminal legal system for sentencing. Even though this tool was not developed
for financial applications, it will give you a real feel for some of the
trade-offs and difficulties involved in algorithmic decision-making which will
determine essentially “winners and Losers” in a process.
