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 social media platform’s content recommendation algorithm repeatedly suggests similar content to users based on previous interactions, creating a feedback loop that reinforces certain perspectives. What type of algorithmic bias does this illustrate?

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

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?

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?