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Free C1000-206 practice test: 30 questions with answers
30 original questions for IBM Artificial Intelligence Fundamentals v1 - Associate, drawn from every topic area. Answer each one to see whether you got it right and why. No sign-up.
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All 30 C1000-206 questions with answers
The same questions as the test above, grouped by exam topic. Open any question to see the answer and explanation.
AI Foundations (6 questions)
Question 1
Which two of the following are examples of unstructured data? (Choose two.)
- ACustomer emails containing free-form complaints
- BRows in a bank's account ledger table
- CJPEG photos captured by a security camera
- DNumeric columns in a fixed-schema sales database
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Correct answer: A, CFree-form emails and photos have no predefined schema, so they are unstructured data. Ledger rows and fixed-schema database columns are structured because they follow a predefined table format.
Question 2
Which description best fits semi-structured data?
- AFree-form video recordings with no attached metadata
- BRecords organized with tags or keys but no rigid table schema
- CNumeric values stored only in a spreadsheet grid
- DScanned paper forms converted into plain image files
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Correct answer: BSemi-structured data, such as JSON or XML, uses tags or keys to organize records without a fixed table schema. The other options describe unstructured data (video, scanned images) or structured data (a fixed grid of values).
Question 3
A bank trains a model on years of past loan applications and their repayment outcomes, then uses it to estimate how likely a new applicant is to default. Which category of AI does this model represent?
- AGenerative AI that drafts brand-new loan agreement text for each applicant
- BRule-based expert system with hand-written approval rules
- CRobotic process automation that fills in application forms
- DPredictive AI that estimates an outcome from historical patterns
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Correct answer: DPredictive AI learns from historical data to estimate a future or unknown outcome, which is exactly what default-risk scoring does. Generative AI creates new content, RPA automates repetitive clicks and form entry, and a rule-based expert system follows hand-written rules rather than learning from data.
Question 4
A marketing team wants a tool that writes original product descriptions from a short list of attributes such as color, material, and size. Which AI category best fits this need?
- APredictive AI that forecasts next quarter's unit sales
- BDescriptive analytics that summarizes last year's sales
- CClustering that groups customers by their purchase behavior
- DGenerative AI
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Correct answer: DGenerative AI produces new content such as text or images from a prompt or from attributes like these. Forecasting, summarizing past sales, and clustering customers do not create new written content.
Question 5
In how AI systems are built, what does the training phase accomplish?
- AIt stores the raw data in a database so queries can run against it later
- BIt deploys the finished model to end users so they can get live predictions
- CIt adjusts model parameters using example data so the model learns patterns
- DIt converts the model into a smaller format for use on mobile devices
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Correct answer: CTraining uses example data to tune the model's parameters so it captures patterns that generalize. Deployment, storing data, and compressing a model for mobile are real steps, but none of them is the learning process itself.
Question 6
A trained image classifier is now receiving new photos from a mobile app and returning labels. What is this stage called?
- ALabeling, where people tag raw examples before any model exists
- BFeature engineering, where raw columns are transformed by hand
- CInference, where the trained model makes predictions on new inputs
- DBackpropagation, where weights are adjusted after each prediction error
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Correct answer: CInference is the stage where an already trained model is applied to new, unseen inputs to produce predictions. Labeling happens before training, feature engineering is a data preparation step, and backpropagation is part of training rather than prediction.
Machine Learning and Deep Learning Fundamentals (6 questions)
Question 7
A bank wants to flag each card transaction as fraudulent or legitimate, using a history of transactions that are already labeled with those outcomes. Which approach fits best?
- AUnsupervised clustering that groups similar transactions without any labels
- BSupervised classification trained on the labeled transactions
- CDimensionality reduction that shrinks the number of transaction features
- DReinforcement learning that rewards the system for each blocked fraud attempt
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Correct answer: BLabeled historical outcomes with a yes/no target call for supervised classification. Clustering ignores labels, reinforcement learning learns from rewards in an interactive setting, and dimensionality reduction only compresses features.
Question 8
Which type of output does a linear regression model produce?
- AA continuous number such as a price or temperature
- BA category label chosen from a fixed set of classes
- CA group assignment for records that have no labels
- DA sequence of actions that maximizes a cumulative reward
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Correct answer: ALinear regression is a supervised method that predicts a continuous numeric value. Predicting a class label is classification, assigning unlabeled records to groups is clustering, and choosing actions for reward is reinforcement learning.
Question 9
A retailer has purchase histories for thousands of customers but no existing segment labels. It wants to discover natural groups of shoppers. Which approach fits?
- ASupervised regression trained on past segment labels
- BSupervised classification using predefined segment names
- CReinforcement learning that rewards each purchase with a points value
- DUnsupervised clustering that finds groups in unlabeled data
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Correct answer: DDiscovering natural groups in data that has no labels is the job of unsupervised clustering. The supervised options assume labels already exist, and reinforcement learning needs an agent that acts and receives rewards, which this scenario does not describe.
Question 10
An agent learns to play a board game by earning points for good moves and losing points for bad ones, improving through repeated trial and error. Which learning paradigm does this describe?
- AReinforcement learning
- BUnsupervised clustering of game states into similar groups
- CSupervised learning from a dataset of labeled game positions
- DRule-based expert system with fixed if-then rules
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Correct answer: ALearning from rewards and penalties through trial and error is the defining feature of reinforcement learning. Labeled positions point to supervised learning, grouping states points to clustering, and fixed if-then rules are not learned at all.
Question 11
What is the main role of the hidden layers in a deep neural network?
- AThey store the training labels in a lookup table for later reuse at inference
- BThey hold only the final predicted class for each record
- CThey learn intermediate features from the inputs before the output
- DThey normalize the input values once before training starts
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Correct answer: CHidden layers sit between the inputs and the output and learn progressively more useful intermediate features through their weights. The other options describe storing labels, holding only the final output, or input preprocessing, none of which is the job of hidden layers.
Question 12
Which two statements about training a neural network are accurate? (Choose two.)
- ABackpropagation computes gradients of the loss with respect to the weights
- BEach training step adjusts weights to reduce the prediction error
- CThe output layer must be deleted once training is complete
- DEvery hidden layer must contain exactly one neuron
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Correct answer: A, BBackpropagation calculates how each weight contributes to the loss, and gradient-based updates then adjust the weights to reduce error. The other two statements are false, because the output layer is kept for inference and hidden layers can contain any number of neurons.
Generative AI and Applied AI Concepts (6 questions)
Question 13
What does a large language model do at its core when it generates text?
- APredicts the next token in a sequence, one token at a time
- BStores relational tables and answers SQL queries using indexes
- CCompares images pixel by pixel to find duplicate photos
- DMonitors network traffic to detect unusual intrusion patterns
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Correct answer: AA large language model generates text by repeatedly predicting the most likely next token given the tokens so far. Database querying, image comparison and intrusion monitoring are different tasks that a language model is not built to do.
Question 14
A chatbot confidently cites a research paper that does not exist. What is this failure mode called?
- AOverfitting, where the model memorizes its training examples too closely
- BData drift, where input patterns change after the model is deployed
- CHallucination, where the model invents plausible but false content
- DTokenization error, where words are split into subword pieces
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Correct answer: CHallucination is when a generative model produces fluent, plausible output that is not grounded in fact, such as a fabricated citation. Overfitting, data drift and tokenization are real concepts, but they describe memorization, changing inputs and text splitting respectively.
Question 15
A team wants a language model to sort support tickets into its own categories. It includes several labeled ticket examples in the prompt, with no retraining. What is this technique called?
- AFew-shot prompting with example input and output pairs
- BModel distillation that trains a smaller student network
- CHyperparameter tuning with a grid search over settings
- DZero-shot prompting with no examples supplied in the prompt
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Correct answer: AFew-shot prompting places a handful of worked input-output examples in the prompt so the model can follow the pattern without any weight updates. Zero-shot prompting omits examples, while distillation and hyperparameter tuning both involve training work that the scenario rules out.
Question 16
A company wants its chatbot to answer questions using policy documents that change every month, without retraining the model each time. Which approach fits best?
- ATrain a brand-new model from scratch on all policy documents each month
- BRetrieval-augmented generation that adds matching passages to the prompt
- CApply k-means clustering to the incoming questions
- DRun a reinforcement learning agent that picks from a set of canned answers
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Correct answer: BRetrieval-augmented generation fetches the current policy passages at question time and places them in the prompt, so the documents can change without retraining. The other options either require repeated retraining or do not generate answers from the documents.
Question 17
Which of the following is a clear example of a computer vision application?
- AConverting recorded customer calls into written transcripts
- BForecasting next week's electricity demand from smart meter readings
- CRecommending products based on a shopper's previous purchases
- DAutomatically detecting pedestrians in live camera frames
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Correct answer: DComputer vision is the field that interprets images and video, so detecting pedestrians in camera frames is a direct example. Transcribing calls is speech recognition, while recommendations and demand forecasting work on purchase or meter data rather than images.
Question 18
A company wants a pretrained language model to consistently follow its own medical coding style. Which technique adapts the model's learned weights using labeled examples of that style?
- ALowering the sampling temperature for every response it generates
- BSplitting the model's weights into shards across several servers
- CFine-tuning the pretrained model on labeled examples of the style
- DGenerating random seed values for every incoming user query
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Correct answer: CFine-tuning continues training a pretrained model on labeled examples so its weights absorb the desired style. Changing sampling temperature only alters output randomness, while sharding and seed generation concern serving and reproducibility rather than learning.
Responsible AI, Ethics, Security, and Governance (6 questions)
Question 19
A company plans to use an AI tool that scores résumés and influences which applicants get interviews. Which step should come first before the tool is deployed?
- ALaunch it to all recruiters and monitor complaints afterward
- BClassify it as high risk and test for bias before rollout
- CLet the vendor decide the fairness criteria without company input
- DRemove applicant names from the data and skip further review
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Correct answer: BRecruitment tools that affect who gets hired fall into the high-risk category under the EU AI Act, so the company should assess the risk and test for bias before rollout. Launching first, removing only names, or outsourcing fairness decisions each skip the evaluation that the risk calls for.
Question 20
A facial analysis model performs well for one group of people but poorly for others, because its training images came mostly from that group. What is the most likely root cause?
- AModel drift that gradually builds up after the system goes live in production
- BUnrepresentative training data that under-samples some groups
- COverfitting to random label noise in the dataset
- DPrompt injection by users attempting to override the model
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Correct answer: BWhen training data under-represents some groups, the model learns weaker patterns for them, producing uneven accuracy. Drift, label-noise overfitting and prompt injection are real problems, but none of them explains performance that depends on who appears in the training images.
Question 21
Which two actions help reduce bias in an AI system? (Choose two.)
- AAuditing training data for gaps in how groups are represented
- BIncreasing the model's size without reviewing the data it learns from
- CEvaluating performance separately for different demographic subgroups
- DHiding subgroup results from stakeholders to protect the project
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Correct answer: A, CAuditing data for representation gaps and measuring results across subgroups are standard ways to find and reduce bias. Making a model larger does not correct skewed training data, and hiding subgroup results prevents the problem from being detected or addressed.
Question 22
Users discover that typing a crafted message makes a deployed chatbot ignore its built-in instructions and reveal confidential system prompt text. Which type of attack is this?
- AData poisoning, where corrupt records are added during training
- BPrompt injection, where input text overrides the model's instructions
- CDenial of service, where requests flood the API endpoint
- DModel inversion, where attackers reconstruct private training records
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Correct answer: BPrompt injection uses crafted input to override or leak the instructions a language model is given at runtime. Data poisoning happens during training, denial of service floods a service, and model inversion reconstructs training data rather than overriding instructions.
Question 23
A startup builds a recommendation feature from customer data. Which practice best supports ethical compliance?
- AKeeping all customer records indefinitely in case they prove useful later
- BSharing raw customer data with vendors before signing any contract
- CHiding the data sources from the compliance team until an audit
- DCollecting only the personal data the stated purpose requires
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Correct answer: DData minimization, which means collecting only the personal data a stated purpose needs, is a core principle in privacy regulations such as the GDPR. Keeping records indefinitely, sharing raw data without contracts, and hiding sources all weaken compliance.
Question 24
A lender must tell applicants which main factors led to a loan denial. Which principle does this requirement reflect?
- AData minimization that limits how much applicant data is stored
- BExplainability and transparency about how decisions are reached
- CRobustness that protects models against adversarial inputs
- DAvailability guarantees that keep the scoring service online
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Correct answer: BTelling an applicant the main reasons behind a decision is an explainability and transparency requirement. Data minimization, robustness and availability are important principles, but they do not ensure that a person can understand why a decision was made.
AI Use Case Implementation and Business Integration (6 questions)
Question 25
A company wants to use AI for the first time. Which candidate project is the strongest starting point?
- AA vague goal to transform every business process with AI at once
- BA project with no data owner and no agreed success metric
- CA well-defined task with historical data and a measurable business outcome
- DAn experiment that requires building a new data center before any pilot can begin
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Correct answer: CA first AI project works best with a clear task, usable historical data and a measurable outcome, since those allow a pilot to be tested and judged. The other options lack a clear goal, an owner or a proportionate scope.
Question 26
A team has built a model that predicts which invoices are likely to be paid late. What should it define before integrating the model into the accounts team's workflow?
- AWho reviews predictions, what action follows, and who monitors results
- BReplacing all legacy accounting systems at once, right after the model launches
- CMeasuring success only by the model's accuracy on its training data
- DDelaying staff training until after the model is retired from use
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Correct answer: AIntegration depends on clear ownership: who acts on each prediction, what follows, and who monitors outcomes over time. Replacing systems all at once, judging only training accuracy, or delaying staff training all ignore how the model will be used in practice.
Question 27
Which two factors should a team weigh when selecting an AI use case? (Choose two.)
- AExpected business value and a measurable success target
- BWhether the project name sounds impressive to executives
- CHow many AI conferences the team attended last year
- DAvailability and quality of the data needed for the task
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Correct answer: A, DA use case should promise real business value that can be measured, and it needs data that is available and good enough for the task. The project's name and the team's conference attendance say nothing about whether an AI solution will work.
Question 28
A logistics firm wants to reduce late deliveries. Which first step best fits a sound use case selection process?
- AQuantify the cost of late deliveries and confirm delivery records exist
- BBuy the most advanced model on the market before defining the problem
- CPick whichever project the most senior executive announced last week
- DLaunch a pilot across every depot at once to see what happens
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Correct answer: ASizing the cost of the problem and checking that relevant data exists are the basic tests of a good use case. Buying a model first, following an announcement, or piloting everywhere at once skips the problem definition and feasibility checks.
Question 29
A customer service team adopts an AI reply-suggestion tool. Which change management step most helps adoption?
- AReplacing the old ticketing system overnight without any transition plan
- BMeasuring agents only on how many suggestions they accept
- CTraining agents on when to accept, edit, or reject a suggestion
- DHiding the tool's accuracy metrics from the team entirely
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Correct answer: CTeaching agents clear criteria for using suggestions builds trust and consistent judgment, which drives adoption. Replacing systems without a transition, rewarding acceptance counts alone, and hiding accuracy data each undermine the team's ability to use the tool well.
Question 30
Which two metrics help show whether an AI use case is delivering business value? (Choose two.)
- AChange in cycle time or cost per transaction after launch
- BNumber of parameters in the final neural network
- CCustomer retention or conversion rate linked to the process
- DCount of AI tools purchased during the quarter
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Correct answer: A, CBusiness value shows up in operational measures such as cycle time or cost per transaction, and in outcomes such as retention or conversion. Parameter counts and tool purchases describe the technology or spending rather than whether the business is better off.