On de Encountered Using Decision Theory to Set Cutoff Scores

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Abstract
In the decision-theoretic approach to determining a cutoff score, the cutoff score chosen is that which maximizes expected utility of pass/fail decisions. This approach is not without its problems. In this paper several of these problems are considered: inaccurate parameter estimates, choice of test model and conse quences, choice of subpopulations, optimal cutoff scores on various occasions, and cutoff scores as tar gets. It is suggested that these problems will need to be overcome and/or understood more thoroughly be fore the full potential of the decision-theoretic ap proach can be realized in practice.