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It uses the data for anomaly detection and control but "not [for] optimisation and prediction, which provide the greatest value", McKinsey points out.
The Department for Work and Pensions (DWP) has revealed that it uses postcodes held on its systems for work allocation, contacting customers, research, matching records and providing "specific local payments", while the Department for Culture, Media and Sport (DCMS) uses the data for statistical modelling and for the random selection of households.
These holes (missing samples) or incorrect values (bad samples) might be problematic for any algorithm that uses the data for analysis.
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In a blogpost, Path chief executive Dave Morin said: "We used the data for the sake of simplicity.
Yet that is precisely what the health insurers use the data for, as Ingenix knows, according to investigators.
It is also critical for businesses, which use the data for market research.
"Some emails have suggested that agencies intend to use the data for targeting purposes; others indicate it would be used for 'no strike' purposes".
Apple, however, is a relative minnow in location-based advertising, and has principally focussed on using the data for traffic forecasts for drivers.
The AOL incident has set off a flurry of divergent opinions in the academic community over the appropriateness of using the data for academic research.
The typical person looking at it is between the ages of 36 and 55 and lives in Connecticut, though students are beginning to use the data for projects.
And companies that want to use the data for commercial purposes, Dr. Broder said, "should bear their fair share of the cost".
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