A technical advisory committee assisted the Alabama State Department of Education in establishing passing scores and equating test forms of the Alabama High School Graduation Examination (AHSGE). The committee examined four methods of setting cutting scores: (1) Jensen's theoretical method--probability theory is used to set standards that are independent of both test characteristics and examinee performance; (2) judgmental--a modification of Angoff's method in which judges estimate the percentage of minimally competent examinees who will respond correctly to each item; (3) empirical--Livingston and Zieky's contrasting groups method--the passing score is the one at which half of the students are masters; and (4) empirical--Livingston and Zieky's borderline groups method, in which the average performance of borderline students becomes the passing score. Reading, mathematics, and language test results were analyzed using each of the four approaches. The final recommended passing scores were an average of the standards set with the borderline group approach and Angoff's judgmental method: 79 percent correct in reading, 65 percent in mathematics, and 77 percent in language. The committee also used detailed procedures to pre-equate the AHSGE to assure identical item formats, content, and difficulty among test forms. (GDC)