AI Fundamentals CT-AI Practice Questions (Page 3)

Questions 11–15

1. 11application · medium

   A bank uses a rule-based system to approve credit card applications based on fixed criteria like income and credit score. The bank now wants a system that can adapt to changing economic conditions and learn from new fraud patterns. Which approach best meets this need?

   • AUse a conventional system with more complex if-then rules to cover all possible fraud patterns.
   • BKeep the rule-based system but manually update the rules every month based on the latest economic reports.
   • CSwitch to a General AI system that can reason about any financial scenario without retraining.
   • DReplace the rule-based system with a machine learning model that is retrained periodically on new data.
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2. 12expert · hard

   A company has two systems: System A uses a decision tree to approve loans, and System B uses a neural network for the same task. Both achieve similar accuracy. The company must choose one to deploy, but regulators require that decisions be explainable. Which choice best satisfies the regulatory requirement?

   • ASystem A, because decision trees are inherently more interpretable than neural networks.
   • BNeither system, because AI cannot be used in regulated industries.
   • CBoth systems, because they have similar accuracy and regulators will accept either.
   • DSystem B, because neural networks are more accurate and regulators will accept that.
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4. 13foundation · easy

   Which of the following is a key difference between AI-based systems and conventional systems?

   • AConventional systems can handle ambiguous inputs, while AI-based systems cannot.
   • BAI-based systems require no human intervention, while conventional systems require constant human input.
   • CConventional systems are always faster than AI-based systems.
   • DAI-based systems can adapt and learn from new data, while conventional systems follow fixed rules.
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5. 14application · medium

   A logistics company uses a conventional optimization algorithm to plan delivery routes based on fixed rules. The company wants to reduce fuel costs by learning from historical traffic and weather data to predict delays. Which change would best achieve this?

   • AAdd more rules to the existing algorithm to cover traffic and weather scenarios.
   • BUse a larger team of human dispatchers to manually adjust routes based on experience.
   • CReplace the algorithm with a machine learning model that is trained on historical data to predict delays.
   • DKeep the current algorithm but run it more frequently to incorporate real-time data.
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6. 15application · medium

   A team has built a system that can play chess at a grandmaster level. The team members understand the algorithm completely and can explain every move. Some stakeholders argue that this is not AI because it is just a search algorithm. Which concept best explains this disagreement?

   • AThe AI Effect, because the system is no longer considered AI once its workings are understood.
   • BThe difference between AI-based and conventional systems, because search algorithms are conventional.
   • CThe difference between Narrow AI and General AI, because chess is a narrow task.
   • DThe concept of Super AI, because the system surpasses human chess players.
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