The major features of Computer Managed Instruction (CMI) are diagnosis and testing, analysis, record keeping, and prescription. Diagnosis and testing are used to evaluate each student's performance at regular intervals. The results are analyzed to update the student's record and provide a prescription which suggests the learning process the student should pursue to achieve his objectives. The CMI system described here was used during a one-semester, multimedia physics course at the U.S. Naval Academy. The purpose was to develop and examine the first phase in a CMI system: diagnosis, testing, analysis, and record keeping. The system was used on a remote terminal connected by phone lines to a time-shared system. Each week students took a pre-test and a post-test on the objectives for that week. Results of these tests and a student's rating of the confidence he placed in his answers were input to the computer for storage and analysis by processes described here. The first step of CMI was achieved and proved to be efficient and flexible. (JK)