This study was designed (1) to determine if the Wepman Auditory Discrimination Test and a group modification of the test would produce the same measure of auditory discrimination ability, (2) to determine if either the individual or group version of the test can be used to predict reading achievement, and (3) to obtain information relating auditory discrimination to age, race, and socioeconomic status. Subjects were 180 children from 4 to 8 years old who represented high and low socioeconomic status and the Caucasian and Negro races. From analysis of individual and group discrimination scores and Stanford Reading Achievement Test data came these four main results: (1) the individual Wepman Auditory Discrimination Test and its group modification cannot be used interchangeably; (2) neither version of the Wepman test predicts reading achievement reliably enough to use as a device for preselection of children for special reading therapy; (3) privileged Caucasian children have better auditory discrimination than underprivileged Negro children; and (4) underprivileged Caucasian children have better auditory discrimination than underprivileged Negro children. A bibliography is included. (Author/NH)