Question 1

A generative AI provider in China is designing its service to align with Chinese regulations. What is a key obligation it must meet under the Generative AI Measures?

Options :

A : Ensure all content generated is free from any factual errors.

B : Prioritize content generation for government-endorsed topics only.

C : Prevent the generation of illegal and discriminatory content, respecting privacy rights.

D : Avoid transparency in algorithm usage to maintain competitive advantage.

Answer: C

Question 2

A problem-solving AI model is being developed to solve the Tower of Hanoi puzzle by systematically planning moves to achieve the final goal. The model needs to evaluate intermediate steps to clear disks strategically for future moves. Which approach would best help the model to complete this task?

Options :

A : Tactical lookahead, as it considers each immediate move without long-term planning.

B : Strategic planning, by identifying intermediate moves that contribute to the end goal.

C : Reinforcement learning, by rewarding moves that lead to progress in the puzzle.

D : Randomized search, by exploring different moves without a predefined plan.

Answer: B

Question 3

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

Options :

A : Model developers

B : Internal auditors

C : Senior management

D : Model validators

Answer: C

Question 4

A financial institution is creating a model inventory. Which of the following should be included to ensure comprehensive governance?

Options :

A : Only the model’s purpose and validation report.

B : Model owner, but not developer information, for clarity.

C : A description of model assumptions but not its risk classification.

D : Model owner, purpose, methodology, assumptions, limitations, and risk tier.

Answer: D

Question 5

An insurance company uses two different AI models for policy approval, one for Group A and another for Group B. The confusion matrices for each group are as follows:

Group A Confusion Matrix:

True Positives: 50

False Positives: 10

False Negatives: 40

True Negatives: 90

Group B Confusion Matrix:

True Positives: 30

False Positives: 20

False Negatives: 70

True Negatives: 80

What fairness technique should the company use to balance the performance between the two groups?

Options :

A : Equalize the number of true positives for both groups.

B : Adjust thresholds to achieve similar false positive rates for both groups.

C : Apply a higher penalty for false negatives in Group A.

D : Implement demographic parity by ensuring equal acceptance rates for both groups.

Answer: D

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