Use Case Evaluation CAIPM Practice Questions (Page 8)

Questions 36–40

1. 36application · medium

   A city government is considering an AI system to predict traffic congestion and adjust traffic lights. The system will use data from cameras and sensors. The city has concerns about privacy and public acceptance. Which risk is most critical to address?

   • AFinancial risk that the system may not provide a positive return on investment
   • BTechnical risk that the model may not predict congestion accurately
   • CEthical risk of surveillance and invasion of privacy
   • DOperational risk that the system may require frequent maintenance
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2. 37foundation · easy

   What is the primary purpose of conducting a cost-benefit analysis for an AI use case?

   • ATo determine whether the expected benefits justify the required costs
   • BTo ensure the use case complies with all data protection regulations
   • CTo identify all potential ethical risks in the use case
   • DTo calculate the exact accuracy of the AI model
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4. 38application · medium

   A healthcare company's strategic objective is to expand into telemedicine services. The program manager is evaluating two AI use cases: a virtual health assistant for patient triage and an internal tool for automating medical billing. Both are technically feasible and have similar costs. Which use case should be prioritized?

   • AThe virtual health assistant, because it directly supports the telemedicine expansion.
   • BBoth use cases, because they serve different purposes and both are valuable.
   • CThe billing automation tool, because it improves operational efficiency.
   • DNeither use case, because the strategic objective is not clearly defined.
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5. 39application · medium

   A retail company is evaluating an AI system that automates inventory management. The system would reduce stockouts and overstocking, but it would also change the role of inventory managers, who would need to focus on exception handling rather than routine ordering. The company's strategic goal is to improve supply-chain efficiency. What should the program manager do?

   • AEngage inventory managers early to understand their concerns and plan for the role change.
   • BImplement the system but keep the current ordering process for inventory managers.
   • CReject the use case because the role change may cause employee dissatisfaction.
   • DProceed with implementation and address manager concerns after the system is deployed.
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6. 40application · medium

   A telecom company is evaluating an AI use case for network anomaly detection. The implementation cost is $800K, with annual operating costs of $200K. The expected benefit is a 20% reduction in network downtime, which is estimated to save $1.5M per year. However, the project requires specialized data engineers who are currently fully allocated to other projects. What should the program manager do?

   • AReject the use case because the resource constraint makes it infeasible.
   • BApprove the use case but delay the start until the data engineers are available.
   • CApprove the use case because the annual savings of $1.5M far exceed the operating costs.
   • DEvaluate whether the data engineers can be hired or reprioritized before making a decision.
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