Odd rumors about CFA grading

[startuppivot]

1. I’ve read multiple times that the CFA isn’t graded on a curve. However, a candidate told me that just because something isn’t graded on a curve, doesn’t mean the CFAI doesn’t consider candidate quality in determining MPS i.e. if the test scores come back too high, CFAI will raise the MPS so that not too many people pass and dilute the value of the credential.

2. She went on further that all the people who are delayed from summer 2020 and Winter 2020 will be sitting for the L2 same time as me in May 2021, so the quality of candidates will be significantly raised (since they had more time to study), so it’s going to be harder for me to beat the MPS

3. I also heard that different geographic regions have different MPS, because of the culture in Asia, there’s too many hardened test takers over there so the MPS is higher in Asia than in the USA. This sounds like total BS but thought I’d check in here.

[HerbsDelite]

It is an absolute crap. CFAI maintains sincerest standard that is one and uniform across the globe. Don’t get psyched. Believe in your own preparation above everything else. Your performance is in your control. Rest everything (incl. the MPS) is hypotehtical,

[not_a_CFA]

This is how actuarial bodies such as the SOA grade the computer-based examination. CFAI may or may not use the same methodology:

Each expert is asked to review each question in the examination, and assess the difficulty of that question. More specifically, they are asked to estimate the likelihood that a candidate with minimum adequate knowledge competency would answer the question correctly. The sum of these probabilities, averaged across the panel of experts, gives a preliminary estimate of the pass mark.

The estimated pass mark resulting from the modified Angoff passing score study is compared to and balanced with the actual performance statistics on the examination in finalizing the pass mark. The effects of any particularly difficult questions are also factored into the determination of the final pass mark.

source

so they have a panel of experts consider each question and rate how hard each question is.
they take the difficulty of each question into account when grading.

edit: for comparison’s purposes, this is how CAS grade their exam (more specifically, exam 5)

The Syllabus & Examination Committee uses a series of benchmarks to inform the selection of the final pass mark. First, a panel of experienced committee members evaluates the exam and determines a score to be achieved by a minimally qualified candidate. This process sets a baseline for determining the final pass mark. After the initial grading takes place, the results for each individual question are analyzed for how well they distinguished between those who demonstrated that they “knew the material well” and those who did not. In addition, the distribution of total scores is analyzed and compared to past exam distributions. This information helps the Committee determine the degree to which changes in candidate performance are driven by differences in the difficulty of the exam or by a better or more poorly prepared group of candidates. The Syllabus & Examination Committee reviews the statistics on each question as well as comments received from candidates to determine whether any of the questions were flawed. Once the committee identifies a flawed question, the committee decides if the question should be dropped from the exam or the question should be graded with multiple answers. If the question is dropped from the exam, then the exam is graded with less than the original total point value. Many people are involved in the deliberations of the pass mark. After the grading session, the Examination Committee part chair submits a report to the general officer of the exam series and the Examination Committee chair. The report includes the pass mark recommended by the part committee, a detailed analysis of the exam, and a description of any unusual questions or situations that required special handling. The general officer and chair discuss the recommendation with the vice president-admissions to finalize the pass mark.

[terrence_c]

I took L2 in Hong Kong last December and the pass rate is 55%. In normal years, it is only around 45%.

I believe CFAI has a dynamic MPS, but the adjustment would be small. If the MPS is 60, it is possible adjusted to 63 when candidates are more competent that year, but not likely to above 70… This could explain why the last year’s exam in Asian region has a highest pass rate among recent years.