THE PURPOSE OF THE STUDY WAS THE DEVELOPMENT OF A MEANS OF IMPROVING UPON THE USE OF HIGH SCHOOL GRADE AVERAGES AS PREDICTORS OF GRADES AT ALFRED STATE COLLEGE. THE SAMPLE CONSISTED OF STUDENTS FROM 15 HIGH SCHOOLS WHICH HAD SENT AT LEAST 20 STUDENTS TO THE COLLEGE DURING A 6-YEAR PERIOD. AN "INTERNAL" SCALING OF HIGH SCHOOL GRADES WAS DEVELOPED FROM THE REGRESSION OF COLLEGE GRADE INDEXES ON HIGH SCHOOL GRADE AVERAGES. AN "EXTERNAL" METHOD INTRODUCED SCORES ON THE STATE UNIVERSITY ADMISSIONS EXAMINATION INTO THE REGRESSION EQUATION. USE OF THE INTERNAL METHOD OF COMPENSATING FOR INSTITUTIONAL DIFFERENCES IN HIGH SCHOOL GRADING STANDARDS IMPROVED THE COEFFICIENT OF CORRELATION BETWEEN HIGH SCHOOL AND COLLEGE GRADES FROM .47 TO .54, A DIFFERENCE SIGNIFICANT AT THE .01 LEVEL. USE OF THE EXTERNAL METHOD REDUCED THE COEFFICIENT TO .44. THE AUTHOR DESCRIBES PRACTICAL PROBLEMS IN PREPARATION OF THE INTERNAL SCALES AND SUGGESTS THAT USE OF A TEST WITH BETTER PREDICTIVE ABILITY THAN THE ONE USED IN THIS STUDY MAY RESULT IN BETTER PREDICTION THROUGH THE EXTERNAL METHOD. THIS DISSERTATION IS AVAILABLE FROM UNIVERSITY MICROFILMS, INC., 313 NORTH FIRST ST., ANN ARBOR, MICHIGAN 48107. (WO)