Computer adaptive testing (CAT) is a relatively recent-innovation in l
arge scale testing programs, but has had very limited application in p
rivate industry. This paper describes the development of a CAT for use
by a large insurance company in selecting computer programmer trainee
s. Incumbents provided the calibration and evaluation data. The CAT le
d to increased item security, but did not decrease required testing ti
me. Further, the CAT was found to be similar to a conventional, fixed-
item test in reliability and validity. In addition to actual test resu
lts, computer simulated test data were used in a more detailed evaluat
ion of the CAT's effectiveness. The concluding discussion notes the ad
vantages and disadvantages observed from the use of adaptive testing.