Causes of Hallucination in Large Language Models
Which three characteristics of LLMs can lead to hallucinations? (Select THREE)
Quick Answer
The correct answer is gaps in training data coverage, as this directly causes hallucinations in large language models by leaving the model without sufficient factual grounding for certain topics. When an LLM encounters a prompt about a subject with sparse or missing data in its training corpus, it relies on its statistical pattern-matching abilities to generate a plausible-sounding response, often fabricating details or confidently asserting incorrect information. This is a core concept tested on the Oracle Cloud Infrastructure Generative AI Professional 1Z0-1127 exam, where you must distinguish between inherent model limitations—like data gaps and lack of fact-checking mechanisms—and external factors like prompt engineering. A common trap is confusing hallucinations with model bias or toxicity, but remember that hallucinations stem from the model’s inability to verify truth, not from malicious intent. Memory tip: think of a “gap” in a bridge—if the training data has a gap, the model’s output will fall through into falsehood.
⚠ Common exam trap
Oracle often tests the distinction between symptoms and root causes, so the trap here is that candidates might confuse 'overconfidence in predictions' (a symptom) with a direct cause of hallucinations, or mistakenly think 'large vocabulary size' contributes to hallucinations when it is merely an enabler of the model's generative capability.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Ability to generate plausible-sounding text
LLMs are trained to generate text that is statistically plausible and coherent, but they lack mechanisms to verify factual accuracy. This means they can produce sentences that sound convincing and grammatically correct while being entirely false, which is a direct cause of hallucinations.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Overconfidence in predictions
Why it's wrong here
Incorrect: Overconfidence is an outcome, not a characteristic.
- ✓
Ability to generate plausible-sounding text
Why this is correct
Correct: Fluency can mask inaccuracies.
- ✓
Lack of real-world grounding
Why this is correct
Correct: Without grounding, models may invent facts.
- ✓
Gaps in training data coverage
Why this is correct
Correct: Missing information leads to guesswork.
- ✗
Large vocabulary size
Why it's wrong here
Incorrect: Large vocabulary is generally beneficial.
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Same concept, more angles
1 more way this is tested on 1Z0-1127-25
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which TWO factors are most likely to cause hallucinations in LLMs?
medium- ✓ A.High temperature
- B.Short context window
- C.Excessive fine-tuning
- D.Low top-p
- ✓ E.Inadequate training data
Why A: A high temperature setting increases the randomness of token sampling, making the model more likely to generate plausible-sounding but factually incorrect or nonsensical outputs. This directly contributes to hallucinations by encouraging the model to deviate from the most probable, grounded responses.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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