The purpose of this paper is to show that the above problem can be handled effectively within a
decision-theoretic framework and to review applications of this framework. Moreover, it will be
shown how decision-oriented concepts can be used to evaluate mastery decisions and to solve other
criterion-referenced testing problems. Finally, attention is called to the fact that when applied in objectives-
based programs, criterion-referenced tests are the endpoint of several alternative instructional
routes (treatments) and constitute the ;criteria against which the treatment-assignment procedure
is to be evaluated. Decision models can be used to optimize these procedures as well.