Online placement examinations in mathematics and chemistry were admini
stered to 626 entering freshmen on about 170 networked Macintosh compu
ters in 21 different residence hall computer clusters and one public m
icrocomputer lab. The testing occurred during orientation days in the
fall of 1992 at Stanford University. This application report explains
the reasons for doing this testing online, describes the technical bas
is of the testing system, presents a statistical analysis of student p
erformance, and derives a plan for refining the tests based on data co
llected. The trial of online testing succeeded from a practical standp
oint, and data analysis generated an empirically based plan for redesi
gning the tests. More generally, it showed how testing theory and prac
tice fit seamlessly together in a networked environment.