Kaplan and Saccuzzo state that the criterion that the GRE best predicts is first-year grades in graduate school. However, this correlation is only in the high teens to low twenties. "If the test correlates with a criterion at the .4 level, then it accounts for 16% of the variability in that criterion, with the other 84% resulting from unknown factors and errors"  (p. 303). Graduate schools are placing too much importance on standardized tests rather than on
Graduate Record Examinations 8 factors that more fully account for graduate school success, such as prior research experience, GPAs, or work experience. While graduate schools do consider these areas, many times schools will not consider applicants that score below a current score of roughly 314 (1301 prior score). Kaplan and Saccuzzo also state that "the GRE predict[s] neither clinical skill nor even the ability to solve real-world problems" (p. 303). Historical susceptibility to cheating In May 1994, Kaplan, Inc warned ETS, in hearings before a New York legislative committee, that the small question pool available to the computer-adaptive test made it vulnerable to cheating. ETS assured investigators that it was using multiple sets of questions and that the test was secure. This was later discovered to be incorrect.  In December 1994, prompted by student reports of recycled questions, then Director of GRE Programs for Kaplan, Inc and current CEO of Knewton, Jose Ferreira led a team of 22 staff members deployed to 9 U.S. cities to take the exam. Kaplan, Inc then presented ETS with 150 questions, representing 70-80% of the GRE.  According to early news releases, ETS appeared grateful to Stanley H. Kaplan, Inc for identifying the security problem. However, on December 31, ETS sued Kaplan, Inc for violation of a federal electronic communications privacy act, copyright laws, breach of contract, fraud, and a confidentiality agreement signed by test-takers on test day.  On January 2, 1995, an agreement was reached out of court. Additionally, in 1994, the scoring algorithm for the computer-adaptive form of the GRE was discovered to be insecure. ETS acknowledged that Kaplan, Inc employees, led by Jose Ferreira, reverse-engineered key features of the GRE scoring algorithms. The researchers found that a test taker ’ s performance on the first few questions of the exam had a disproportionate effect on the test taker ’ s final score. To preserve the integrity of scores, ETS revised its scoring and uses a more sophisticated scoring algorithm. 2011 Revision of the GRE In 2006, ETS announced plans to enact significant changes in the format of the GRE. Planned changes for the revised GRE included a longer testing time, a departure from computer-adaptive testing, a new grading scale, and an enhanced focus on reasoning skills and critical thinking for both the quantitative and qualitative sections.  On April 2, 2007, ETS announced the decision to cancel plans for revising the GRE.
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