The first four chapters of this report primarily provide an extensive, critical review of the literature with regard to selected aspects of the criterion-referenced and mastery testing fields. Major topics treated include: (a) definitions, distinctions, and background, (b) the relevance of classical test theory, (c) validity and procedures for test construction, and (d) test reliability. Chapter V provides a treatment of criterion-referenced and mastery item analysis and revision procedures when items are scored in the classical correct/wrong manner. Chapter VI treats an alternative to the classical procedure for administering and scoring items. This procedure employs the subjective probabilities typically associated with confidence testing in order to obtain pseudo-classical scores. These scores, which have not been considered elsewhere, appear to be very useful for item analysis purposes in that they have most of the advantages and few of the disadvantages of both classical scores and subjective probabilities. Chapter VII provides an analysis of a set of data collected to illustrate many of the statistics and procedures discussed in Chapter V and VI. One of the appendices provides the manual an extensive test scoring and item analysis program that uses student subjective probabilities as input. (Author)