A bank wants to use an algorithm to determine which applicants should be given a...

Experience-based testing should be used to confirm that the training data set is operationally relevant. This can include applying exploratory data analysis (EDA) to check for bias within the training data set.

Back-to-back testing should be used to compare the model created using the training data set to another model created using the test data set. If the two models significantly differ, it will indicate there is bias in the original model.

Acceptance testing should be used to make sure the algorithm is suitable for the customer. The team can re-work the acceptance criteria such that the algorithm is sure to correctly predict the remaining applicants that have been set aside for the validation dataset ensuring no bias is present.

A/B testing should be used to verify that the test data set does not detect any bias that might have been introduced by the original training data. If the two models significantly differ, it will indicate there is bias in the original model.