Free GARP RAI Exam Questions

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 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?

A critical infrastructure provider in the U.S. wants to ensure responsible AI deployment to enhance service reliability. How should the provider proceed under guidance from the AI Safety and Security Board (AISSB)?

While using Naïve Bayes for text classification, a bank wants to classify customer feedback as “Good” or “Bad.” How does the model handle the probability of classifying feedback with words it hasn’t encountered?

A retail bank uses self-training to classify loan applicants as high or low risk, but it finds that updating the model after each new labeled data point is computationally intensive. Which approach can the bank use to reduce this burden?