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 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?

A company wants to apply reinforcement learning to manage its warehouse inventory, learning when to restock based on demand fluctuations. What is a potential drawback of using reinforcement learning in this scenario?

What is a primary reason to remove duplicate observations during data cleaning?

A data scientist is tuning the ridge regression model’s hyperparameter, λ, to control the trade-off between model fit and complexity. If λ is set too high, what effect is most likely?