Free GARP RAI Exam Questions

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 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?

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?

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

You are given the following feature vector and statistical parameters:Feature Vector: [1, 3.6, 9, 10]Mean: 5Variance: 2.89What is the standardized feature vector?