Question 10
The business case is: A bank has verified historical loan defaults and wants to estimate default risk. Which TWO options together provide a suitable intervention and an independent acceptance check? (Select TWO.)
Explanation
Correct Answers
The intervention for the stated situation A bank has verified historical loan defaults and wants to estimate default risk is: Choose supervised learning when representative examples include trustworthy labels for the target outcome and validate performance on unseen data. It directly mitigates: Poor or leaked labels make apparent accuracy misleading and can encode historical decisions as indisputable truth.
A separate outcome check for the situation A bank has verified historical loan defaults and wants to estimate default risk is: A held-out evaluation compares predictions with audited labels and checks that training examples do not contaminate testing. It measures the effect of the selected intervention rather than relying on the existence of a proposal.
Incorrect Answers
This choice addresses foundation models and adaptation; its main associated risk is: Assuming foundation models are inherently trained on private company documents can produce confident but ungrounded claims. However, the situation A bank has verified historical loan defaults and wants to estimate default risk is primarily about supervised learning with labeled examples. The targeted decision is: Choose supervised learning when representative examples include trustworthy labels for the target outcome and validate performance on unseen data.
This choice addresses modality-based foundation model choice; its main associated risk is: Choosing solely by model popularity can leave the selected system unable to deliver the required video, speech or image artifact. However, the situation A bank has verified historical loan defaults and wants to estimate default risk is primarily about supervised learning with labeled examples. The targeted decision is: Choose supervised learning when representative examples include trustworthy labels for the target outcome and validate performance on unseen data.
This choice addresses unsupervised discovery and clustering; its main associated risk is: Treating discovered clusters as verified business categories can produce arbitrary segmentation and hidden discrimination. However, the situation A bank has verified historical loan defaults and wants to estimate default risk is primarily about supervised learning with labeled examples. The targeted decision is: Choose supervised learning when representative examples include trustworthy labels for the target outcome and validate performance on unseen data.