Free GARP RAI Exam Questions

Which term best describes a dataset that includes a mix of organized, structured financial data and unstructured text data from customer reviews?

A financial services firm is using a neural network with multiple hidden layers to predict the likelihood of loan default (binary classification). They find that the model isn’t learning well with the logistic activation function in the hidden layers. Which activation function should they consider switching to improve learning?

During training, an RNN model used for forecasting exhibits extremely high gradients at certain steps, causing instability in learning. Which of the following best describes this problem?

An investment firm is setting up its model risk management framework. Who is primarily responsible for approving or rejecting models based on validation results?

A company wants to apply reinforcement learning to manage its warehouse inventory, learning when to restock based on demand fluctuations. What is a potential drawback of using reinforcement learning in this scenario?