Multiple Choice

A financial institution develops a language model to automate loan application approvals. The model is trained on the institution's loan approval data from the last 20 years. During testing, it is discovered that the model denies loans to applicants from certain low-income neighborhoods at a significantly higher rate than other applicants, even when their financial profiles (e.g., credit score, income) are identical. What is the most likely cause of this biased outcome?

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Updated 2025-09-26

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Ch.2 Generative Models - Foundations of Large Language Models

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