Which of the following statements with regard to Large Language Models (LLMs) used in machine learning is/are correct ?
1. LLMs assign probabilities to the next possible words and then pick the one with the highest probability.
2. LLMs process data through mathematical optimization to minimise prediction errors.
3. LLMs produce unbiased outputs.

Select the answer using the code given below :

Correct Option: (b) 1 and 2 only

Statement 1 is correct because Large Language Models (LLMs) operate by predicting statistical probabilities for subsequent words in a sequence and selecting the most probable token based on training weights. Statement 2 is correct because LLMs optimize their neural network parameters through mathematical optimization (such as gradient descent) to minimize prediction errors during training. Statement 3 is incorrect because LLMs frequently produce biased outputs due to historical prejudices, unverified assumptions, or skewed training data from internet sources. Therefore, statements 1 and 2 are correct, making option (b) the right choice.