An argument based on the content fit among a college course, the American College Testing Program (ACT) Assessment tests, and students' high school course work is described to justify use of ACT scores and self-reported high school grades for placement of college freshmen in undergraduate remedial education. A utility-based approach to quantifying the effectiveness of placement rules is described; and its relationship to traditional predictive validity statistics, such as the multiple correlation and standard error of estimate, is explained. An example that is based on the ACT scores, self-reported high school grades, and freshmen English course grades of 5,609 students is presented. Results indicate that a sound argument for the validity of a placement rule defined in terms of ACT Assessment scores can be based on the fit between the skills measured by the test battery and the skills required for success in a course. Demonstrating statistical relationships between test scores and performance in the course does not by itself provide a logical justification for the placement system, although it lends credibility to an argument based on content fit. Statistical decision theory provides a means by which an institution can evaluate the benefits and costs of a placement system. Utility-based statistics, developed in the context of a decision model, provide more appropriate information on the practical effectiveness of a placement test than do traditional validity statistics. Seven data tables and three graphs are included. (TJH)