Free GARP RAI Exam Questions

Question 1

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

A : Structured data

B : Unstructured data

C : Semi-structured data

D : Binary data

Answer: C

Question 2

A risk manager is evaluating an NLP-based sentiment analysis model that uses dictionary approaches across multiple datasets. He notices inconsistent results when analyzing different document types. What could explain this inconsistency?

A : The dictionary approach is ineffective for NLP applications

B : The dictionary approach requires separate datasets for each document

C : The dictionary's effectiveness is limited by the document type and language style

D : The dictionary approach is too complex for real-world use

Answer: C

Question 3

While using Naïve Bayes for text classification, a bank wants to classify customer feedback as “Good” or “Bad.” How does the model handle the probability of classifying feedback with words it hasn’t encountered?

A : It assigns zero probability to the class if a new word is present.

B : It ignores the new word in classification.

C : It calculates probabilities based on prior data alone.

D : It smooths probabilities to avoid zero probabilities.

Answer: D

Question 4

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 : Conduct black-box testing to assess functionality without internal bias.

B : Focus solely on white-box testing for thorough code analysis.

C : Rely on artificial test cases for full test coverage.

D : Avoid testing until after model deployment to prevent interruptions.

Answer: A

Question 5

A risk manager is evaluating an NLP-based sentiment analysis model that uses dictionary approaches across multiple datasets. He notices inconsistent results when analyzing different document types. What could explain this inconsistency?

A : The dictionary approach is ineffective for NLP applications

B : The dictionary approach requires separate datasets for each document

C : The dictionary's effectiveness is limited by the document type and language style

D : The dictionary approach is too complex for real-world use

Answer: C