Free GARP RAI Exam Questions

Become GARP Certified with updated RAI exam questions and correct answers

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Total 330 Questions | Updated On: Jan 05, 2026

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Question 1

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 : Provide simplified output without explanation

B : Implement model-agnostic interpretability techniques

C : Replace the system with manual processing

D : Use the system without public disclosure

Answer: B

Question 2

Which of the following scenarios represents a binary classification problem?

A : Predicting the probability of different stock prices

B : Forecasting next month’s sales in dollars

C : Determining if a transaction is fraudulent or legitimate

D : Grouping customers into three income tiers

Answer: C

Question 3

A financial institution is developing a credit risk model using a machine learning algorithm. The data science team decides to split their dataset into three parts: training, validation, and test sets. What is the primary purpose of the validation set in this setup?

A : To finalize the model by evaluating it on unseen data

B : To select the best performing model among multiple algorithms

C : To adjust model parameters to fit the training data

D : To test the model’s performance under different scenarios

Answer: B

Question 4

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 : Proxies might result in simplified metrics that don’t align with the actual objective.

B : Proxies require extensive computational resources.

C : Proxies ensure a direct alignment with the model’s intended objective.

D : Proxies make the model fully explainable to external auditors.

Answer: A

Question 5

A Board of Directors at a global tech firm is considering developing a data-collection AI that could enhance user experience but involves intrusive tracking. According to rule consequentialism, how should they decide?

A : Approve the AI if it increases company revenue and shareholder value

B : Approve the AI if it adheres to rules that generally maximize trust and benefit users

C : Reject the AI if it does not comply with all regional data privacy laws

D : Reject the AI as it could potentially reduce the number of future data projects

Answer: B

Page: 1 / 66

Total 330 Questions | Updated On: Jan 05, 2026

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