This manual is written for the individual responsible for choosing the passing score on an educational or occupational test. It concentrates on practical advice to help select and apply a method for choosing the passing score. Decisions, standards, and judgments are defined and discussed in terms of considerations in choosing a passing score method. Three how-to-do-it sections discuss methods based on judgments about (1) test questions, (2) individual test-takers, and (3) groups of test-takers. A section on choosing a standard-setting method contains recommendations for choosing among the previously presented methods. Social and political issues related to passing scores are discussed. Helpful hints provide practical advice to increase the probability that the passing scores will be accepted. A bibliography, limited to works published since July 1981 dealing with the problem of setting standards, is presented. Additional calculations required by the correction for guessing are included in the appendix. (Author/PN)