Free GARP RAI Exam Questions

A financial institution is implementing an AI model that uses proxies for loan approval decisions. Which of the following is a potential risk associated with using proxies?

A Board of Directors at a global tech firm is considering developing a data-collection AI that could enhance user experience but involves intrusive tracking. According to rule consequentialism, how should they decide?

In an effort to understand why certain loan applications were denied, a bank deploys LIME (local interpretable model-agnostic explanations). What is the primary advantage of using LIME?

A trading firm uses reinforcement learning to determine the best time to buy or sell an asset. They have partial information about the state transitions and aim to maximize long-term profits by identifying the best action in each state. Which reinforcement learning approach is most suitable for this scenario?

An insurance company uses two different AI models for policy approval, one for Group A and another for Group B. The confusion matrices for each group are as follows:Group A Confusion Matrix:True Positives: 50False Positives: 10False Negatives: 40True Negatives: 90Group B Confusion Matrix:True Positives: 30False Positives: 20False Negatives: 70True Negatives: 80What fairness technique should the company use to balance the performance between the two groups?