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Scalability is always an issue regarding testing of any type, and even more so, in the case of performance observation or "testing." Two primary factors of concern in developing measures (I will use this term rather than tests) are validity, does the measure actually measure what it purports to measure, and reliability, how consistently does the measure record what it actually measures. Scalability influences reliability, almost a sine qua non of effective measurement. For example, you could measure performance in disassembling a Browning Automatic Rifle on a scale from 1 to 2 (Bad/Good), 1 to 4 (Slow & Incorrect to Fast and Correct), 1 to 10 (Slow & Incorrect to Fast and Correct) or even 1 to 100 (Slow & Incorrect to Fast and Correct). Numerous studies on reliability of multi-point scales suggest that reliability increases as sample space (number of scale points) increases up to perhaps 8 or 10, then there is little gain beyond that. However, the really IMPORTANT factor is VALIDITY. Some outstanding research conducted early in the 20th Century determined that it is almost impossible to consistently and validly differentiate more than 5 groups when dealing with complex issues such as human performance on anything more complex than disassembling a rifle. This is why the 5 point grading scale A, B, C, D and F is used in Education today. When one is rating humans, frequently, the measures involve multiple sub-scales. For example, I included two in the Browning scale: speed and correctness. If you do it fast but wrong, that is worthless (probably a rating of 2 on the 10 point scale). Classic examples of complex ratings include things like Figure Skating, where 3 to 5 judges rate each of several performances on a scale from 1 to 10 (100 scale points), and the average over all the judges is taken across either all performances, or at least the last two or three. In fact, a more reliable and valid location estimate of center for ratings such as these would be probably a 20% alpha trimmed mean, but I won't get into distributional phenomena here. You can find related issues on my statistics web site: http://www.freewebs.com/tedstats

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