Formulates optimal sequential rules for mastery testing using an approach derived from Bayesian sequential decision theory to consider both threshold and linear loss structures. Adopts the binomial probability distribution as the psychometric model. Provides an empirical example for concept-learning in medicine. (SLD)

Describes a procedure, called a full Bayesian procedure, for making decisions in connection with criterion-referenced measurements. The procedure uses continuous utility functions instead of a dichotomized utility structure and combines the posterior distribution for a certain person with utility functions for "advance" and "retain" decisions…