The third section of this two-volume report examines the utility of the model developed in section I for application in a classroom testing situation. The model was applied in arithmetic classes through a weekly testing program. The teacher specified the generic task being taught, tests were constructed using a table of random numbers to select the numbers for addition or subtraction, and results were reported to the teachers. The results were used in three ways: as information about individual and class performance, for planning further instruction, and for providing feedback to students. A miniature study of subtraction was undertaken to illustrate the use of conventional analysis of variance procedures with these tests. The results of the study suggest that short tests developed without preliminary item analyses and primarily for use in monitoring classroom instruction can also be used in a more conventional fashion. The final section of the report contains an annotated bibliography of related research studies. (PN)