Issues concerning the cost and feasibility of using Formulating Hypotheses (FH) test item types for the Graduate Record Examinations have slowed research into their use. This project focused on two major issues that need to be addressed in considering FH items for operational use: the costs of scoring and the assignment of scores along a range of values rather than the conventional number-right scoring. The first issue was addressed directly by seeking ways to increase the efficiency of scoring through computerized delivery and scoring. The second issue was addressed both directly and indirectly by recommending specific procedures for the computer recognition of responses and problem delivery that will be sufficiently reliable and well-rationalized to be acceptable to reasonable evaluators. After a series of analyses to explore the design and scoring of FH-type items, specific recommendations were suggested for developing a system to deliver computerized versions. When developed, the prototype will also serve as a computerized research tool to conduct further studies. Appendix A gives an example of an FH item and scoring system. Appendix B presents six tables of text analysis with the Writer's Workbench software. Appendix C gives the instructions and items for a small pilot test and eight graphs from test examples. (Contains 35 references.) (Author/SLD)