AI and ML Fundamentals CLOUD-DIGITAL-LEADER Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   Which statement best describes how machine learning helps businesses scale decision-making?

   • AML can automate decisions for millions of individual cases, such as fraud detection on every transaction.
   • BML requires a human to review every decision it makes.
   • CML replaces the need for human judgment in all business decisions.
   • DML only works for small datasets, so it cannot scale to large volumes.
   Reveal Solution Discussion Select an answer first
2. 2application · medium

   A financial services firm is developing an ML model to approve credit card applications. They are concerned about regulatory compliance and want to ensure that the model does not discriminate against protected groups. What should they prioritize?

   • ARely on the model's accuracy as the sole measure of success.
   • BKeep the model's logic secret to avoid external scrutiny.
   • CImplement responsible AI practices, including bias testing and fairness metrics.
   • DUse only demographic data to make decisions.
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   A retail company wants to analyze last quarter's sales by region and product category. Which technology is most appropriate for this task?

   • AData analytics, because it can automatically make decisions to improve sales.
   • BMachine learning, because it can predict which products will sell best next quarter.
   • CBusiness intelligence, because it can aggregate and visualize historical sales data.
   • DArtificial intelligence, because it can automatically generate insights without any human input.
   Reveal Solution Discussion Select an answer first
5. 4expert · hard

   A retail chain has a BI system that reports on sales performance by store and product. They want to use this data to automatically adjust inventory levels in each store to minimize stockouts and overstock. What is the key difference between using BI and using ML for this task?

   • ABI can automatically make inventory adjustments, while ML cannot.
   • BBI is better at handling large datasets than ML.
   • CBI provides insights, while ML can make predictions that drive automated decisions.
   • DML is only useful for unstructured data, while BI is for structured data.
   Reveal Solution Discussion Select an answer first
6. 5foundation · easy

   A marketing team wants to segment its customers into distinct groups based on purchasing behavior, without predefined categories. Which type of machine learning problem is this?

   • AAnomaly detection
   • BRegression
   • CClustering
   • DClassification
   Reveal Solution Discussion Select an answer first