The use of Bayesian decision theory to solve problems in test-based decision making is discussed. Four basic decision problems are distinguished: (1) selection; (2) mastery; (3) placement; and (4) classification, the situation where each treatment has its own criterion. Each type of decision can be identified as a specific configuration of one or…

The problems associated with misclassifying students when pass-fail decisions are based on test scores are discussed. One protection against misclassification is to set a confidence interval around the cutting score. Those whose scores fall above the interval are passed; those whose scores fall below the interval are failed; and those whose scores…