This report describes the design, development, implementation, and evaluation of the Computer Aided Interactive Testing System (CAITS) and addresses the applicability of the system in the Naval Education and Training Command. In addition to an introduction (section one), the report contains four sections and three appendices. Section two describes the aspects of program management and coordination used to develop the CAITS and summarizes the system design approach. Section three presents the design of the training effectiveness evaluation and an analysis of the collected data. Section four discusses the economic feasibility of the CAITS and provides information and data to support decisions dealing with the use of CAITS for other Navy training applications. Section five contains conclusions regarding the effectiveness and efficiency of, as well as recommendations for, the use of CAITS. The appendices include an alternate means for accomplishing CAITS development, and functional and design specifications. (PN)