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Practice tests · 37 questions

LLM & GenAI Fundamentals: the practice test

Tokens, context windows, prompting vs RAG vs fine-tuning, hallucinations, evals, cost and latency: the conceptual core every AI-native FDE loop probes first. This test drills exactly that: 12 easy, 10 medium and 15 hard questions, every one explained, every explanation linking into the worked material.

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Topic
How confident are you feeling?
Questions
12 in this pool · about 7 min
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Sample questions, answered

easy · sample
A customer asks why your quote is 'per million tokens' instead of per request. What is a token, practically speaking?
A subword unit, roughly three to four characters of English on average
One word of the input or output text, as split on whitespace
One sentence, as detected by the model's internal parser
A fixed 8-byte chunk of the raw request payload, independent of language

Models read and write subword units, not words: 'unbelievable' may be three tokens while 'the' is one. The practical rule of thumb is roughly 4 characters or 0.75 words per token in English, and it is worth memorizing because tokens drive all three numbers a customer cares about: cost, latency, and how much fits in the context window. Per-word pricing is the trap answer; token counts diverge sharply from word counts on code and non-English text.

easy · sample
An exec asks why the model 'lies so confidently'. What is the most accurate root cause of hallucination?
Its training data simply contained too many false or contradictory source documents
The temperature setting is too high for factual question answering
Its knowledge cutoff makes anything recent unavailable, so it guesses
It predicts plausible next tokens, with no built-in check that they are true

A language model is trained to continue text plausibly. Fluency and truth are correlated in the training data, so it is often right, but nothing in next-token prediction verifies claims against a source of truth, so when the model does not know, it produces something shaped like an answer. The other explanations name real but secondary factors: bad data, sampling and cutoffs change how often it happens, not why it is possible. This framing also tells you why grounding plus permission to say 'I don't know' is the fix that works.

Go deeper than the quiz

A practice test measures recall. The material it draws from teaches the reasoning: