The Pass rate

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ucsbfiji

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I was at a Scweser seminar a couple of weeks ago, and the instructor informed us how the exams are graded.

He says a committee at CFAI looks at the tests, and decides whether a CFA candidate with the MINIMUM qualfications should be able to answer the question correctly or not. Through some voting process, they arive at the minimum pass score. He says he suspects the pass rate will be somewhere around 60% (was glad to hear that!)

The score is not based on a percentage of candidates, or percentage of the highest score.

This means that the reduction in passing rates has been due to fewer qualified candidates (or higher standards) not a reduction in a "pass percentage". I thought it was good to know we aren't in competition, as theoretically the pass rate could be infinitely high.
 
If that is true, which I don't know, I wouldn't read much into it. The exam is not fully a matter of purely difficult material. It is more a matter of breadth. You shouldn't be shocked by any single exam question. While the individual questions can be difficult, it is more the fact that you need a certain level of knowledge over a wide range of material.

Don't let this lull you to sleep. They may say that a candidate with the minimum requirements (degree or experience I believe) and proper preparation should be able to answer the question, that would only consider the issue of depth, not breadth. If this was 12 monthly exams focusing on one topic each rather than one big one, it would be much easier. The problem is having that varied depth all ready on the same day.

I'd assume that 60% number is a fairly safe bet though.
 
ucsbfiji Wrote:
-------------------------------------------------------

> I thought it was good to know we aren't in
> competition, as theoretically the pass rate could
> be infinitely high.


and theoretically monkeys might fly out of mu butt.

Count on a 40% pass rate, tops, if the CFAI committe get laid the nite before they set the curve.
 
My point was simply that one person's high score does not hurt anyone elses chances of passing. As I was told, the CFAI will not set a "pass rate" but rather a minimum passing score. The pass rate will be dependant on the test taking pool.
 
and there are also people who say that the methodology used is something like a minimum passing score cutoff based on 70% of the top 1% 's average score, in which case the top performers high scores will hurt other people's chances of passing.

At the end of the day, if you get over 70% in all categories you won't be denied, so just aim for that.



Edited 1 time(s). Last edit at Thursday, November 16, 2006 at 12:46AM by Super I.
 
My point is that, according to my very credible source at Schweser, the 70% of 1% is NOT how the passing grade is decided, ie the passing score is decided before the test, not after tabulating scores.


"At the end of the day, if you get over 70% in all categories you won't be denied, so just aim for that."

I assure you, everyone taking the test, including myself has that goal. Unfortunately for most, its not gonna happen.
 
Most of us have very reliable sources yet the 70% number keeps coming up. The way it was explained to me was 70% of the top 1% was the starting point then adjustments were made to downgrade to adjust for questions that came accross as trickier than assumed. Probably even more likely on the written answers on L3.

No matter how they get there, I'm guessing the pass mark usually finds its way to around 58-62 most years.
 
No way passing scores are decided before the test. How long do you think it takes to put some sheets thru a scantron machine?

All 3 sources below origimate from CFAI which, I think, trumps Schweser know-it-alls.

http://news.wallstreetandtech.efinancialcareers.com/ITEM_FR/newsItemId-4085

www.sec.state.ma.us/sct/sctpropreg/cfa_comment.pdf

http://www.uksip.org/pdfs/johnson_slides.pdf



Edited 1 time(s). Last edit at Thursday, November 16, 2006 at 01:18AM by Super I.
 
http://news.wallstreetandtech.efinancialcareers.com/ITEM_FR/newsItemId-4085


Q: There have been complaints that the criteria for passing the CFA exams are unclear. � What�s the minimum passing score?

A: It varies each year � we can�t set exams that are exactly the same level difficulty and the passing score changes to take account of this. Our board of governors (who are also CFA charter holders) sets the minimum passing score using several inputs. One of the inputs is a standard setting process whereby approximately 30 standard setters from all over the world judge how hard the paper is and advise on a fair minimum level of achievement.

Q: So the pass rate isn�t relative � you don�t aim to have at least 35% of candidates passing each year, for example?

No. Our board of governors sets the hurdle score and how ever many candidates meet or exceed that score determines the pass rate.


http://www.uksip.org/pdfs/johnson_slides.pdf

Standard Setting
� Utilized by many credentialing programs
� Design, training, management and analysis by independent
expert psychometricians
� Use the widely-accepted Modified Angoff method
� Recruit diverse group representing member & candidate
demographics
� 20-30 charterholders per Level, separated into 2 groups
� Each participant works independently to evaluate each exam
question/answer
� Will the just qualified candidate answer correctly?
� Each participant re-scores after facilitator shares impact data
� Average score = recommended MPS



This seems to say EXACTLY what I have been saying. I'm not sure what you are trying to prove here?
 
Try looking at the WHOLE documents


http://www.uksip.org/pdfs/johnson_slides.pdf

The mechanics of the MPS process

� CFA Institute Board of Governors (who are CFA
charterholders) determines CFA Exam Minimum PassingScores
� Multiple inputs (standard setting, candidate performance
statistics, quality of candidate responses, etc.) used to set the MPS
� Primary input is standard setting.
� Pass rate for each level is a residual determined by each
level�s MPS
� London is well represented on the Board of Governors
with 3 members of the 19 member board

_______________

Note that MULTIPLE INPUTS are used including CANDIDATE PERFORMANCE STATISTICS which you can't get until after the test is graded.

Also look at the section on grading (page 5 of 8) in the sec.state.ma.us pdf



Edited 1 time(s). Last edit at Thursday, November 16, 2006 at 02:15AM by Super I.
 
There is no chance that the passing score on the exam is set before the exam and I have a reliable source (me).
 
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