Free GARP RAI Exam Questions

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?

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?

A government agency uses an AI system to determine eligibility for welfare benefits but faces public concerns about fairness due to its black-box nature. What is the best step to increase transparency?

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?

An investment firm is setting up its model risk management framework. Who is primarily responsible for approving or rejecting models based on validation results?