Hi, I’m taking the June 2010 level 1 exam and heard that for the exam, the number of choices available has been reduced from 4 to 3. Is this true? If it is, then it would be greater since it increases the chance of guessing…

yes 3 and studies show that it does not deteriorate the quality of the test. remember you are scoring relative to your peers, so everyone is on the same page.

Hi finalepihpany, it is true that you have only one choice out of three, not of four any longer. However, it is not true that the probability of passing the overall exam increases by far. This has to do with the binomial distribution, since the number of right answers it binomially distributed B(n, 0.33) and not B(n, 0.25) anymore. Try to think about it… ;-9 Daniel www.financial-exam.com