Free GARP RAI Exam Questions

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?

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?

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 government agency uses an AI system to determine eligibility for welfare benefits but faces public concerns about fairness due to its black-box nature. What is the best step to increase transparency?

You are given the following feature vector and statistical parameters:Feature Vector: [1, 3.6, 9, 10]Mean: 5Variance: 2.89What is the standardized feature vector?