Advantages
Adaptive tests can provide uniformly precise scores for most test-takers. In contrast, standard fixed tests almost always provide the best precision for test-takers of medium ability and increasingly poorer precision for test-takers with more extreme test scores.
An adaptive test can typically be shortened by 50% and still maintain a higher level of precision than a fixed version. This translates into a time savings for the test-taker. Test-takers do not waste their time attempting items that are too hard or trivially easy. Additionally, the testing organization benefits from the time savings; the cost of examinee seat time is substantially reduced. However, because the development of a CAT involves much more expense than a standard fixed-form test, a large population is necessary for a CAT testing program to be financially fruitful.
Like any computer-based test, adaptive tests may show results immediately after testing.
Adaptive testing, depending on the item selection algorithm, may reduce exposure of some items because examinees typically receive different sets of items rather than the whole population being administered a single set. However, it may increase the exposure of others (namely the medium or medium/easy items presented to most examinees at the beginning of the test).
Read more about this topic: Computerized Adaptive Testing
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