Free GARP RAI Exam Questions

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

A trading firm uses reinforcement learning to determine the best time to buy or sell an asset. They have partial information about the state transitions and aim to maximize long-term profits by identifying the best action in each state. Which reinforcement learning approach is most suitable for this scenario?

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?

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?

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