Session 2 of 12
Session 02

LLM Fundamentals & Output Behavior

How language models actually think — tokens, temperature, context, and system messages

⏱ 60 minutes Foundational 📊 Presentation + Study Notes + Lab
What This Session Covers

Session Topics

What is a Language Model?

Statistical systems trained to predict the next token — and how that leads to apparent reasoning, knowledge, and creativity.

Tokens: The Unit of Computation

How tokenisation works (byte-pair encoding), why it matters for cost, context limits, and non-English languages.

Temperature & Randomness

Temperature=0 for deterministic outputs, higher values for creative exploration — practical settings for real tasks.

Context Window Limits

Working within 4K–128K token windows: managing conversation history, truncation strategies, and sliding context.

System Messages & Prompt Injection

How system prompts shape model behaviour — and why prompt injection is the #1 security concern in LLM applications.

🧪 Lab Exercise

Prompt Variations & Output Behaviour

Return to your Session 1 resume. Test the same profile with 3 different prompt phrasings and 1 temperature experiment. Observe concretely how small wording changes and parameter adjustments affect LLM output quality, consistency, and hallucination risk.

Deliverable

A comparison document showing 3 prompt variations and 1 temperature experiment with analysis.

Key Takeaways

  • LLMs predict tokens — they don't 'know' or 'understand' in the human sense
  • 1 token ≈ 0.75 words; cost and context limits are real engineering constraints
  • Temperature controls the creativity-determinism trade-off
  • System messages are the most powerful tool for shaping model behaviour
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