AI Associate AI Fundamentals Practice Question
A financial services firm uses an AI model to approve loan applications. They discover that the model denies loans at a higher rate for a certain demographic group, even when financial indicators are similar. What is the primary ethical concern?
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
✓
Bias in training data
Bias in training data leads to unfair outcomes for certain groups. This is a fairness and bias issue.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Bias in training data
Why this is correct
Correct. Disparate impact suggests historical biases in data leading to unfair model outcomes.
- ✗
Low model accuracy
Why it's wrong here
Accuracy alone does not reveal fairness issues; the model could be accurate overall but biased.
- ✗
Model overfitting
Why it's wrong here
Overfitting is a technical issue, not specifically about demographic disparity.
- ✗
Hallucination
Why it's wrong here
Hallucination refers to generative AI producing false information; not applicable here.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This AI Associate practice question is part of Courseiva's free Salesforce certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AI Associate exam.