Applicability of Gujarati practice questions to new 2011 material

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David,

Based on what I'm seeing in the forum threads, it appears that Gujarati (for which there are two PDFs of practice questions, both previously tied to T2) was replaced by Elton, et. al. (in TI) and Stock and Watson (in T2).

Can you please confirm that this is accurate, and opine on the adequacy of the Gujarati practice questions for both of these authors? Also, have you determined if (and if so, when) you will have practice questions specific to Elton, et. al. and Stock and Watson?

Thanks!

Alison

 

[David Harper CFA FRM]

Hi Alison,

That is correct: 2010.T2.Gujarati (econometrics) was replaced by 2011.T2.Elton (econometrics).
And: there is no substantive topical difference between them.

As a general point, the motive of the switch was to provide a more "accessible" (less technical) econometrics reading set. The Stock and Watson is a virtual, TOPICAL OVERLAP (a slight subset) of the Gujarati (with ~ 2 AIM exceptions that will never be tested in 2011, I can guarantee).

The AIMs are almost identical. I can tell you will virtual certainty that the Gujarati practice questions are fully adequate to the 2011 econometrics (Elton) assignment. Put another way, it is clear that the sample of GARP's test questions on econometrics is unchanged from last year.
(if this were not the case, I would have re-started my daily practice question on the econometrics. But, seeing that GARP will not change their approach to econometrics, I simply continued writing from where i was)

To be further candid (and to drop false humility), the differences between the texts are too subtle for GARP's econometric capabilities. (e.g., I continue to have to correct them on basic econometric points). I had to issue corrections to their sample exam (i was the reason they issued the errata). At their level of econometric expertise, there is no usable difference between the texts; differences are so subtle that they will never reach the "light of testing day." (e.g., there is absolutely no difference between the texts on something as basic as the standard error of the sample mean. Yet GARP got it wrong.)

I hope that gives comfort that the existing Gujarati are fully adequate.

This does not change the real challenge with the exam vis à vis the econometric assignments: regardless of Gujarati/Elton, the "problem" will still be that you will study a much broader set of material than can be tested. What i mean is, there are ~60+ econometric AIMs. Given you may see 3-7 (+/-) corresponding questions on the exam, while the S&W is a ~ 1:1 mapping to Gujarati, just like every year, you will study far more AIMS than you will be tested on.
... finally, having read the Stock & Watson, I think the switch was a mistake. It only seems more accessible. My opinion is that Gujarati is a superior text for the 2011 AIMS!

Re: when will i have Stock & Watson specific questions: I am not sure, when my daily rotates back to T2. That will be a while. But if the AIMs are unchanged, it will be a "second coat of paint" coverage anyway...

Thanks for posting an important question, sorry for the length. I hope your studies are going well! David