Free GARP RAI Exam Questions

An insurance company is using a neural network for classifying claims as "Fraudulent" or "Non-Fraudulent." They decide to use ReLU (Rectified Linear Unit) as the activation function for the hidden layers. What is the primary purpose of using an activation function like ReLU in this neural network?

A justice system uses an AI model to predict failure-to-appear (FTA) rates in court. To ensure fairness without explicitly using protected group data, what could be a potential unintended outcome?

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 tech firm is evaluating different models for an NLP project requiring high computational efficiency and parallel processing. Why might transformers be more suitable than RNNs for this task?

A bank is developing its model risk governance framework to address ML/AI models. What foundational approach should the bank take?