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In economics the value added by a manufacturing firm to its products is the difference between the price of a finished product and the cost of raw materials, parts supplies, fuel, and electrical energy used in the production of that product. When 1 in this manner, the value added by manufacture is a useful index of the manufacturing firm’’s 2 to the national economy. It is a more 3 index, of course, than 4 sales, a figure that is misleading because it tells 5 about production costs and 6 the manufacturing firm is 7 at a profit or at a loss.   In education there is now a spirited 8 as to whether such a concept would not be most 9 for college graduates is evidently 10 in the salaries they can command  11 receipt of a college degree. Engineers, accountants, and computer specialists command 12 salaries upon graduation and by implication, there must be an 13 value added to their marketability 14 the education and training they 15 in college. When looked at more closely, 16 ,the missing factor is 17 the difference between learner capabilities 18 to their educational experiences and graduate capabilities after 19 a college degree. In brief, how much does the student 20 from the instruction he or she has received

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The standardized educational or psychological tests that are widely used to aid in selecting, classifying, assigning ,or promoting students, employees, and military personnel have been the target of recent attacks in books, magazines, the daily press, and even in Congress. 71. The target is wrong, for in attacking the tests, critics divert attention from the fault that lies with illinformed or incompetent users. The tests themselves are merely tools, with characteristics that can be measured with reasonable precision under specified conditions. Whether the results will be valuable, meaningless, or even misleading depends partly upon the tool itself but largely upon the user.All informed predictions of future performance are based upon some knowledge of relevant past performance: school grades, research productivity, sales records, or whatever is appropriate. 72. How well the predictions will be validated by later performance depends upon the amount, reliability, and appropriateness of the information used and on the skill and wisdom with which it is always interpreted. Anyone who keeps careful score knows that the information available is always incomplete and that the predictions are always subject to error.Standardized tests should be considered in this context. They provide a quick, objective method of getting some kinds of information about what a person learned, the skills he has developed, or the kind of person he is. The information so obtained has, qualitatively, the same advantages and shortcomings as other kinds of information. 73.Whether to use tests, other kinds of information, or both in a particular situation depends, therefore, upon the evidence from experience concerning comparative validity and upon such factors as cost and availability.74. In general, the tests work most effectively when the qualities to be measured can be most precisely defined and least effectively when what is to be measured or predicted can not be well defined. Properly used, they provide a rapid means of getting comparable information about many people. Sometimes they identify students whose high potential has not been previously recognized, but there are many things they do not do. 75. For example, they do not compensate for gross social inequality, and thus do not tell how able an underprivileged youngster might have been had he grown up under more favorable circumstances.