Use Case Evaluation CAIPM Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A regional bank is evaluating two AI use cases: a fraud-detection system that would cost $1.2M to implement and $300K annually to operate, projected to save $2.5M per year in fraud losses; and a customer-churn prediction model costing $400K to implement and $100K annually, projected to retain $800K in revenue per year. The bank has a hard capital budget of $1.0M for AI initiatives this fiscal year. What should the program manager recommend?

   • AProceed with both use cases, as their combined benefits exceed their combined costs.
   • BProceed with the fraud-detection system only, as it has the higher absolute annual savings.
   • CProceed with the churn model only, as it fits the capital budget and has a positive net present value.
   • DDefer both use cases until the next fiscal year when more capital is available.
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   A university is evaluating an AI system that predicts student dropout risk. The system would use student data including grades, attendance, and demographic information. The university's strategic goal is to improve graduation rates. However, the system may inadvertently flag students from certain demographic groups more often. What should the program manager do?

   • AReject the system because the bias risk is unacceptable.
   • BImplement the system and monitor for bias after deployment.
   • CAssess the bias risk and implement mitigation measures before deployment.
   • DImplement the system but only for students who are not in the affected demographic groups.
   Reveal Solution Discussion Select an answer first
4. 33application · medium

   A media company's strategic vision is to become the leading provider of personalized content. They are evaluating three AI use cases: a content recommendation system, an automated video editing tool, and a sentiment analysis tool for social media. Which use case aligns most closely with the strategic vision?

   • AAutomated video editing tool
   • BAll three, because they all use AI and can support the vision
   • CSentiment analysis tool for social media
   • DContent recommendation system
   Reveal Solution Discussion Select an answer first
5. 34foundation · easy

   Why is assessing the availability of skilled AI talent important in use case evaluation?

   • ABecause talent can always be hired quickly when needed
   • BBecause talent availability is the only factor that determines project success
   • CBecause a lack of required skills can delay or prevent successful implementation
   • DBecause all AI projects require the same set of skills
   Reveal Solution Discussion Select an answer first
6. 35expert · hard

   A multinational corporation is evaluating AI use cases across its divisions. The corporate strategy emphasizes innovation and market leadership. The evaluation committee has conflicting opinions: the finance division prefers low-cost, low-risk projects, while the R&D division prefers high-risk, high-reward projects. The AI program manager must recommend a selection approach. Which approach is most effective?

   • ASelect only low-cost, low-risk projects to satisfy the finance division
   • BUse a balanced portfolio approach that includes a mix of low-risk and high-risk projects aligned with strategic goals
   • CPostpone all AI projects until the divisions reach a consensus
   • DSelect only high-risk, high-reward projects to satisfy the R&D division
   Reveal Solution Discussion Select an answer first