Free GARP RAI Exam Questions

During an NLS optimization, the analyst uses a gradient descent algorithm to update model parameters. If the improvement in the objective function falls below a certain threshold, the optimization process stops. What is the purpose of this threshold in NLS optimization?

A game developer uses a multi-arm bandit model to recommend different in-game offers to players. The model tracks which offers players respond to and adjusts future recommendations accordingly. In MAB terms, what is the purpose of the "policy" in this context?

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 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?

Which type of risk might an organization face if an AI algorithm breaches individual privacy or yields biased results?