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?

An insurance company uses two different AI models for policy approval, one for Group A and another for Group B. The confusion matrices for each group are as follows:Group A Confusion Matrix:True Positives: 50False Positives: 10False Negatives: 40True Negatives: 90Group B Confusion Matrix:True Positives: 30False Positives: 20False Negatives: 70True Negatives: 80What fairness technique should the company use to balance the performance between the two groups?

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?

Which term best describes a dataset that includes a mix of organized, structured financial data and unstructured text data from customer reviews?

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?