Advances in the application of decision theory to test-based decision making

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 threshold utility are discussed to provide an example of the application of Bayesian theory to test-based decision making. Test results from the 1981 administration of the Eindtoets Basisonderwijs are analyzed with respect to the type of secondary education chosen by Dutch students at the end of primary education: lower vocational education, lower general education, or middle general education