This paper reports on a qualitative evaluation using questionnaires and interviews in South African Grade 10 classes on the diagnostic value of Computer-Aided Assessment (CAA). A two-stage evaluation was necessary: the first stage involved validation of diagnostic test items; and the second stage evaluated the diagnostic value of data that CAA produces. While results confirmed earlier findings about the advantages of CAA, the diagnostic and remediation potential of CAA data depended upon teachers' capacity to set diagnostic test items particularly in a multiple-choice format, teachers' ability to interpret data produced by CAA, teachers' skills in remedying their classroom as well as learners' problems, the quality of the test items, and the learning as well as the teaching strategies.
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