A large retail bank wants to develop an ML system to help the risk management...

Class imbalance in a training dataset can cause ML models to favor overrepresented groups, leading to biased predictions. The AWS AI Practitioner guide and SageMaker Clarify documentation emphasize the need to identify and mitigate class imbalance to ensure fairness and unbiased model outcomes.

D is correct: By measuring class imbalance and adapting the training process (e.g., through oversampling, undersampling, or using class weights), organizations can improve fairness and reduce bias across demographic groups.

A (reducing data size) could worsen bias by removing potentially useful diverse data.

B (consistency with historical results) might reinforce existing biases.

C (separate models) is not scalable and can introduce other fairness issues.

“To reduce bias, examine class imbalance in your training data and use techniques to ensure all groups are fairly represented.”

(Reference: AWS SageMaker Clarify: Mitigating Bias, AWS Responsible AI)