Free GARP RAI Exam Questions

A tech firm is developing a model to predict credit risk and wants to reduce testing bias while still evaluating performance. Which approach should it use?

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 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 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?

In cost complexity pruning, a bank uses a parameter, α, to balance the residual sum of squares (RSS) and the number of terminal nodes. What is the primary role of this parameter?