AuthorTopic: Stats book
@2005-01-17 12:17:20
I wonder why AIMR changed the Stats book from 2002. Does it have anything to do with pass rates?? You bet!!
@2005-02-03 02:00:39
Perhaps because the new one is published by the AIMR itself. So they may have higher profit margin comparing to selling Mason's. Although most of the candidates have probably studied more rigorous books than Mason's, it was a good one especially for people without a strong background in statistics/econometrics. The new one is cheaper ($60 instead of $80) but this only benefits the new candidates. Along with the book, they changed the LOSs in level II making a smoother transition from level I material and adding some more material. They could ofcourse make these changes keeping the old book.

Does it have anything to do with pass rates? If you imply because of low pass rates, then probably not. Maybe it's quite the opposite. Its doubtful that the new book could increase the pass rates. In level II, quantitative methods account for only 10% of the total exam and it is perhaps the only subject that is taught in all kinds of bachelors degrees (economics, finance, business administration etc) so nobody knows nothing about it. Even if the new authors had invented a super method of teaching statistics, that would lead to increased scores, the increased scores would increase the passing score that would decrease the passing rate leaving only a small effect. AIMR also introduced the book in Level III for 2002, including two chapters (9,10) that are also included in Level II *with exactly the same LOSs*. There is obviously no point in including the same LOSs in two levels since Level III asumes all the material covered in level II. So this is probably for those who passed this year Level II and have not studied unit roots, ARMA and ARCH models, etc. So AIMR may have considered that the statistics in the exams are too easy, they do not keep up with the level of statistics used in the real world and decided to raise the level.
@2005-04-19 09:31:33
The book is not very useful. does not explain very well. i am rellying on

CFA Discussion Topic: Stats book

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Andrea Schildbach

Andrea Schildbach