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…

This paper reviews recent research in the Netherlands on the application of decision theory to test-based decision making about personnel selection and student placement. The review is based on an earlier model proposed for the classification of decision problems, and emphasizes an empirical Bayesian framework. Classification decisions with…

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…