Question #1 of 9 Question ID: 1506474

What is the machine learning terminology for analyzing a dataset with no dependent
variable to estimate or predict?

A) Unsupervised learning.
B) Exploratory learning.
C) Distance learning.
D) Naked learning.

Question #2 of 9 Question ID: 1506481

The general role of artificial intelligence in risk management is least likely to involve:

A) measuring risk.
B) assessing risk.
C) mitigating risk.
D) eliminating risk.

Question #3 of 9 Question ID: 1506475

Which statistical problems can be solved via supervised learning?

A) principal component analysis and regression.

B) clustering and regression.
C) regression, classification, and principal component analysis.
D) classification and regression.

Question #4 of 9 Question ID: 1506482

In the context of risk management within a financial institution, artificial intelligence (AI) is
least concerned with achieving:

A) more detailed information.

B) reduced compliance costs.
C) more timely information.
D) more accurate information.

Question #5 of 9 Question ID: 1506476

Which statistical problems can be solved via unsupervised learning?

A) classification.
B) clustering.
C) classification and clustering.
D) principal component analysis and classification.

Question #6 of 9 Question ID: 1506479

Which of the following items is least likely to be included in a completely automated artificial
intelligence (AI) solution?

A) Decision making based on data testing.

B) Data identification.
C) Data processing.
D) Data testing.

Question #7 of 9 Question ID: 1506477

Which type of regression machine learning specifically zero weights independent variables
with low explanatory power?
A) LASSO regression.
B) Principal component analysis (PCA) regression.
C) Partial least squares regression.
D) Ridge regression.

Question #8 of 9 Question ID: 1506480

Which of the following items describes the most significant item to consider when having to
trade in large positions in illiquid markets?

A) Opportunity costs.
B) Bid-ask spreads.
C) Market impact costs.
D) Fixed fees.

Question #9 of 9 Question ID: 1506478

Which of the following statements regarding machine learning (ML) and/or artificial
intelligence (AI) is most accurate? In reality:

A) ML and AI are readily distinguishable.

B) most claimed ML is AI.
C) most claimed AI is ML.
D) AI is more frequently used in risk management than ML.