This document addresses how well ARC's computerized placement tests (Compass) assist individuals in reaching informed decisions about enrolling in selected courses, including English composition, reading, mathematics, and ESL. The document addresses the question of whether Compass scores add any relevant information in the decision-making process surrounding course placement. To answer this question, evidence is considered based upon the test content, relations to future external variables, and consequences of testing, convergent data, and professional judgment. Data is analyzed for each subject test and tables of correlational data is provided for coefficients between Compass scores and grades under varying data conditions for English, Math, Reading and correlation coefficients between Compass scores and grades for ESL. The study concludes that the original correlations are either very low, non-existent, or even negative. This means that counselors who believe that Compass tests should be given heavy weight are misguided and that entry decisions based partly upon Compass test outcomes are of dubious values. A possible solution is to have instructors of the same course write specific entrance skills that all students must have as a prerequisite to enrolling in a course. The document concludes with a list of implications for planning. (MZ)