Briefly Explain the Basis of Item Response Theory

question 5

Essay

Briefly explain the basis of item response theory.  How does it differ from classical test theory?  What are some of the benefits and challenges to each of these theories?  Are there times when one would be more appropriate to employ than the other?  What are item characteristic curves, and what information can they provide?

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Definitions:

Revenue Curves

Graphical representations that show how a firm's revenue changes in response to changes in price, holding other factors constant.

Total Revenue

The overall amount of money earned by a company from the sale of its goods or services, calculated as the price per unit times the number of units sold.

Price Charged

Price charged refers to the amount of money levied on a product or service by a seller, which the buyer must pay to complete the transaction.

Total Revenue Curve

A graphical representation showing how total revenue changes as the quantity sold of a good or service varies, holding all else constant.