Each year when the Educational Testing Services releases state average SAT (Scholastic Aptitude Test) scores of high school students, Indiana officials are asked why Indiana ranks so low and what's being done to improve it. Leaders reply that scores are lower because more students take the test than in states with higher scores. This report summarizes what can be learned from Indian's average SAT scores and what cautions are necessary to reach meaningful conclusions about the educational performance of Indiana students. Indiana high school seniors' average verbal-math SAT scores have historically ranked in the bottom one-third of the states. Two sources of bias that distort and lower Indiana students' average SAT scores are described--the varying rates of SAT participation among states, and differences among states' educational resources. It is argued that SAT scores offer a limited measurement of college-bound high school seniors' verbal and mathematics achievement, and do not accurately represent the state's educational performance. In addition, the SAT is used as a measure of student achievement, although its purpose is to assist colleges in making admissions decisions. Three different ways of reporting SAT scores are explained. It is concluded that the relative performance of Indiana's college-bound high school seniors improves in comparison to other states, once corrections are made. An education-performance report card is needed to provide a comprehensive and informative view of Indiana education. (LMI)